Jul 02, 2015

    Private home prices 'down for 7th straight quarter'

    THE fall in Singapore's private home prices continued in the second quarter of this year with a 0.9 per cent drop - a seventh straight quarter of decline, the latest government flash estimates show.

    This followed a 1 per cent decline in the first quarter of this year, said the Urban Redevelopment Authority (URA) yesterday.

    The price fall was seen across all market segments.

    In the Core Central Region, prices slipped 0.5 per cent, higher than the 0.4 per cent decline in the previous quarter.

    Prices of private homes in city fringes or the Rest of Central Region fell 0.5 per cent, smaller than the 1.7 per cent fall in the previous quarter.

    In the suburban areas or the Outside Central Region, prices slipped 1.2 per cent, after a 1.1 per cent decline in the first quarter.

    The flash estimates are compiled based on transaction prices given in contracts submitted for stamp duty payment and a survey on developers' sales during the first 10 weeks of the quarter.

    The statistics will be updated four weeks later, when URA releases the full real estate statistics for the second quarter.

    Chia Siew Chuin, director of research and advisory at Colliers International, said that while the most recent quarterly decrease represents the seventh consecutive quarter of downward price adjustments, "the overall private residential price correction from the peak is still fairly moderate, at a total of 6.7 per cent over the course of 21 months".

    "As such, the overall easing of prices in the private residential market can be considered very much a soft landing towards the runway of sustainability, without the turbulence of price volatility," said Ms Chia.

    She added that overall private home prices "are likely to soften by about 4-6 per cent" for the whole of this year.

    Real estate firm ERA also said that private home prices are projected to continue to fall "at the current moderate pace, in the absence of any unforeseen events", adding that it expects an overall price decline of 5-6 per cent for the whole of this year.