Private properties in Singapore have consecutively fallen for 4 straight quarters, though falling we are expecting the market to be recovering with the marked slower rate of decline.
URA private residential price index has shown a 5.9% decrease in Q2. As compared to the fall in Q1 of 14.1%, this decrease showed signs of recovery.
Analysts were surprised this continuing fall in the property index, as anecdotal evidence showed climbing prices in latter Q2.
Reliable sources have shown that median prices in 2Q for brand new projects (99 yr leasehold) were at $787,000, 31% higher than the median price in Q1 at $695,000. Similarly, Freehold private projects were at $927,000, 26% higher than the median price in Q1 at $732,000. There is a significant increase in the number of transactions, about 49% more than Q1.
On the contrary, a URA spokesman mentioned that certain developers only increase their prices in late Q2, and the price increase was insignificant and only subjected to a few projects.
He added, more projects suffered from a fall in process over Q2 2009 which directly affects the overall prices as reflected in the price index from URA.
A quick flash of Q2 2009 of private non-landed residential properties
• Core Central Region – Fell 7%(Quarter 2, 2009) Fell 16%(Quarter 1, 2009)
• Rest of Central Region – Fell 6%(Quarter 2, 2009) Fell 17%(Quarter 1, 2009)
• Sub-Urban Region – Fell 3%(Quarter 2, 2009) Fell 7%(Quarter 1, 2009)
From the above figures, it shows a decline in prices at a decreasing rate in Singapore.
In conclusion, analysts forecast that the property market is expected to recover further. However, this recovery will not reach prices obtain in 2007 as funds from the global market may be still affected by the current economic crisis to further drive prices. Various experts still maintain a cautious outlook of the property market where they expect a W shaped recovery.
Despite of this some private condominium in Singapore with location near to the train station continue to rise steadily when near to completion, for example, Casa Merah in the eastern part of Singapore which is minute away from the train station draw a good crowd of buyer.