Tuesday 3 January 2017

Private home prices slide for 13th straight quarter but decline eases to 0.4% in Q4 - SRX



Singapore home prices dropped for a 13th quarter, extending the longest losing streak on record, with the slow decline easing in the last three months of 2016.
An index tracking private residential prices dipped 0.4 per cent in October-December period, compared with the 1.5 per cent fall in the third quarter, according to preliminary data from the Urban Redevelopment Authority on Tuesday (Jan 3).
For the whole of 2016, prices have fallen by 3per cent, compared with the 3.7 per cent drop in 2015, URA said.
URA's quarterly estimates include for the second time the net prices of de-licensed projects - as opposed to their gross prices which might include discounts and rebates. To improve transparency in the market, developers of such projects were required to submit net prices of units sold to the URA from September last year.
De-licensed projects are those that have obtained the Certificate of Statutory Completion and where individual titles have been issued.
URA said its flash data for Q4 are compiled based on transaction prices given in contracts submitted for stamp duty payment, and data on units sold by developers (both licensed and de-licensed) only up till Dec 16.
URA reiterated that past data have shown that the difference between the quarterly price changes indicated by the flash estimate and the actual price changes when the statistics are updated four weeks late could be significant when the change is small. It advised the public to interpret the flash estimates with caution.
The Q4 flash data also show that prices of landed homes fell by 2.2 per cent from the second quarter, more than the 1.4 per cent fall for non-landed properties.
Prices weakened across locations, with homes in prime districts having the biggest 1.8 per cent decline. This was followed by a 1.3 per cent drop in prices for properties fringing the prime areas, and 1.2 per cent decline in the suburban areas.

The Straits Times
Source: SRX (03 Jan 2017)