Private housing prices climb steadily in 1Q10

Private property prices distance themselves further from public housing resale prices with a 5.6% overall increase as per the 1Q10 results released by URA today.

PropNex CEO Mr Mohamed Ismail notes that the price index for private property is maintaining its steady growth from 4Q09 into 1Q10, growing to 175.0. “While this figure still falls short from the all-time peak of 181.4 in 2Q96,” he says, “I am confident that the private property price index will best that by the end of 2010. And this will be easily achieved with our projected overall growth of about 4–5% per quarter for the rest of 2010.”

Upon closer observation of the main geographical areas, the trend continues from 4Q09 with the growth of the Rest of Central Region (RCR) leading the pack at 7.9%. Next is the Core Central Region (CCR) with 4.4%, followed very closely by the Outside Central Region (OCR) with 4.3%.

“It is still expected that the CCR and RCR prices will lead the private property price growth in 2010,” explains Mr Ismail. “There are definitely signs of continuous stability and sustained growth in Singapore property.”

The continuous upward trend of CCR and RCR prices are mainly due to greater investor confidence.

“Looking at private properties sold in the first quarter of 2010,” he continues, “71.6% of the majority of the all transactions were at a median sale price of $1000psf or more. This again proves the very healthy demand for properties in the Core and Rest of Central Regions.” In contrast, only 56.5% of all private properties sold in the same period last year had a median sale price exceeding $1,000psf.

He cites The Vision at West Coast Crescent, which saw a median sale price of $1,050psf of its 236 units, as a breakthrough in the private property mass market. Other hot projects include The Estuary (212 units at a median price of $770psf), 76 Shenton (202 units at a median price of $1,900psf) and The Laurels (115 units at a median price of $2,830psf).

“Prices are expected to remain steadfast in the near future,” he says, “although I would caution all prospective buyers to do their research before buying and to buy within their means. They avoid speculative views and purchase any property with a mid to long-term view.”