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SINGAPORE: Private property prices in Singapore increased 2.1 percent in the fourth quarter of 2020 from the previous quarter, according to preliminary estimates from the Urban Redevelopment Authority (URA) on Monday (January 4).
This compares with a 0.8 percent increase in the prior quarter, URA said.
For all of 2020, private home prices rose 2.2 percent, compared to a 2.7 percent increase in 2019.
Christine Sun, head of research and consulting at OrangeTee & Tie, said the fourth quarter increase was the steepest quarterly increase since the second quarter of 2018, when prices rose 3.4% quarter-on-quarter.
Prices were driven by the rest of the central region, which rose 4.8 percent in the fourth quarter, followed by the central central region, where prices increased 3.3 percent. Prices outside the Central Region increased 1.7 percent in the quarter.
For the whole of 2020, prices in the Central Central Region fell 0.2%, while prices in the Rest of the Central Region and Outside the Central Region increased 5.1% and 3.1% respectively.
“There were a number of new projects launched in the fourth quarter of this year that could have raised prices in these regions,” Ms Sun said.
“Prices have also increased on many projects launched,” he said.
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Investors around the world are bracing for a more steady recovery in 2021 and that vaccine development and efficacy could be a “game changer” that could control the COVID-19 pandemic, Ms. Sun said.
“The Singapore housing market will continue to be driven by the ample liquidity still circulating in the financial system. Buyers’ confidence may further increase due to growing optimism for vaccines and the reopening of Phase 3,” he added.
Property analyst Ong Kah Seng said that with the start of Phase 3, it could make property purchase sentiments more “optimistic” in 2021.
“Phase 3 could reflect potential economic stabilization and opportunities for long-term property price appreciation,” Ong said.
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A series of “blockbuster launches” could be launched in the city’s fringe and luxury areas, potentially raising the overall price index, Ms. Sun said.
“Overall prices for private homes may increase 1 to 4 percent, while new home prices may grow at a faster rate of 2 to 5 percent in 2021.”
There has also been renewed interest in resale properties in recent months, he added.
“Luxury homes and large resale units have been in demand, while attractively priced private resale homes in the mass market and outlying areas of the city have sold out.”
“We anticipate that the demand for resale homes will recover further this year, while resale prices may increase about 1 to 4 percent throughout the year,” Ms. Sun said.
