Calling all HDB flat owners! Could this be your time to purchase a private property? According to the Urban Redevelopment Authority (URA), private property prices in Singapore decreased into the first quarter of the year. This can be attributed to last year’s cooling measures, as well as with more properties launched than sold by developers.
Compared to the mere 0.1% decline during last year’s fourth quarter, the first quarter of the year saw a sharper drop of 0.7% in the prices of private properties, reflecting the sector’s second consecutive quarter of price decline.
Declining non-landed property prices
Unlike the 0.5% increase in the previous quarter, non-landed property prices dropped by 1.1%. With most situated in the Core Central Region (CCR) and Rest of Central Region (RCR), investor buyers were significantly affected by last year’s cooling measures, thus resulting in a steeper price dip. For non-landed properties in the CCR, prices fell by 3% in the first quarter, while those in the RCR declined by 0.7%
Meanwhile, it rose by 0.2% in the first quarter for non-landed purchases in Outside Central Region (OCR). This contrast can be attributed to the supply of more affordable houses in the area, as well as increased buyer support for owner occupation such as those who are right-sizing.
Increasing private home rent
Overall, rentals across private residential properties rose by 1% in the first three months of 2019, with an increase of 0.2% for landed property rental prices, and 1.1% for non-landed property rentals. This is also in line with an increase of 1.6% and 1.7% for non-landed property rentals in the CCR and OCR respectively. This reflects on an increased interest in private home rental, in the midst of declining private property prices.
New private developments ahead
As more buyers take a wait-and-see attitude, developers continue to launch more than 2,500 new private properties in the first three months of the year. This is around 80% more than 1,600 units launched in the previous quarter. To keep up with the market, prices of previously launched developments will be adjusted, while future projects priced more competitively to entice buyers.
Are you thinking of selling your HDB flat to take a leap into owning a private property? Ohmyhome is delighted to be a part of your journey in searching, selling or buying your home through direct channels. If DIY is not your style, don’t worry. Our agent services got you covered! Call 6886 9009 to learn more.