Private home prices in Singapore fell for the first time in three years, dropping by 0.4 per cent in the second quarter of 2023, according to flash estimates released by the Urban Redevelopment Authority (URA) on Monday (July 3).

This is the first quarterly decrease in prices since the first quarter of 2020 as price momentum eased across all market segments, said URA.

On a quarter-on-quarter basis, the index fell by 0.4 per cent in the second quarter following a 3.3 per cent gain in the previous quarter.

The fall in prices comes after several rounds of property cooling measures since December 2021, including the latest increase in additional buyer’s stamp duty which was implemented in April.

The prices of non-landed properties fell by 0.5 per cent in the second quarter, a reversal from the 2.6 per cent increase in the previous quarter.

The decline was mainly driven by properties in the Rest of Central Region (RCR), where prices fell by 2.6 per cent compared with a 4.4 per cent increase in the previous quarter.

The pace of increase in the Core Central Region (CCR) moderated to 0.3 per cent, from the 0.8 per cent increase in the previous quarter.

The increase in prices in the Outside Central Region (OCR) similarly moderated to 1.2 per cent, from a 1.9 per cent increase in the previous quarter.

Prices of landed properties saw their smallest gain in two years, said URA, increasing by 0.1 per cent compared with the 5.9 per cent rise in the previous quarter.

While the sale transaction volume increased by about 16 per cent on a quarter-on-quarter basis amid a rise in the number of units launched for sale, it fell by about 30 per cent on a year-on-year basis, said URA.

The sale transaction volume totalled 4,762 in the second quarter of 2023, compared to 4,121 in the previous quarter and 6,811 in the second quarter of 2022.

The flash estimates are compiled based on transaction prices given in contracts submitted for stamp duty payment and data on units sold by developers up until mid-June.

URA will release its full set of real estate statistics for the second quarter of 2023 on July 28. CAN

Source:
courtesy of TODAY

by Today Online

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