URA flash estimate, up 0.8% in Q3 2020

The flash estimate from Urban Redevelopment Authority (URA) shows an increment of 0.8 percent on the overall price index for private homes in Singapore for the third quarter of the year 2020 compare to the second quarter 2020. Analysts mentioned that the increase of the price index is mainly from non-landed properties from the Rest of Central Region (RCR) and Outside of Central Region (OCR). Most of the buyers are HDB upgraders who had finished the minimum occupation period (MOP) for their HDB properties and from the landed properties segment.

New Launch Condo Index Graph

The flash estimate from URA on Thursday, 30 September 2020, shows that the prices for non-landed private homes remain in Q3 as compared to Q2, after a 0.4 percent increment in Q2. The landed properties performed better than the non-landed private home as the number showed the prices of landed properties increased 3.8 percent in Q3 versus Q2. According to Mr. Leonard Tay, head of research at Knight Frank Singapore, there are 512 landed transactions in Q3 (based on data up to 22 September 2020). More than doubled when compared to Q2 with only 211 landed transactions.

For non-landed private homes, the prices in the core central region (CCR) decreased by 4.9 percent in Q3 after a 2.7 percent growth in Q2. Non-landed private homes in RCR and OCR performed better with the prices in RCR edge up 3.3 percent and OCR increased 1.7 percent in Q3 when compared to Q2.

Mr. Wong Xian Yang, Cushman & Wakefield’s associate director of research, mentioned that year to date, prices edge up 0.1 percent and the private residential segment is doing very well despite the current economic environment. He estimated that there are 5,900 transactions in Q3 2020, higher than the 5,763 transactions in Q3 2019. However, Mr. Wong caution that demand could fall in Q4 2020 due to uncertainties in economic once the pent-up demand is gone and also the restriction of re-issuance of Options To Purchase (OTP) by URA could cause some pull-back.

At the same time, Ms. Christine Sun, head of research and consultancy at OrangeTee & Tie, feels that the private residential market may continue the up-trend. She mentioned that as more sectors of the economy are reopening and Singapore eases into post-‘circuit breaker’ Phase Three, properties’ demand may remain strong in the coming months.

The flash estimate data is based on the transaction prices that are submitted for stamp duty payment in the contacts, and also data on units sold by new launch condo developers up to mid-September 2020. URA will release its full set of real estate statistics for Q3 after the statistics are updated on 23 October 2020.

URA advised the public to interpret the flash estimate with caution as past data have shown that the difference between the quarterly flash estimate and actual statistic could be significant.

 

Source: https://www.businesstimes.com.sg/real-estate/singapore-private-home-prices-up-08-in-q3-from-previous-quarter-ura-flash-estimate

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