This write-up takes a peek at the some of the current property cost trends in Singapore.
Many indicators suggest that rates continue to going north.
The quarterly price index put together by the Urban Redevelopment Authority (URA), showed that rates of private homes rose by 0.6 per cent in the 3rd quarter of 2012; whereas the cost boost was only 0.4 per cent in the 2nd quarter of 2012.
A comparable upward trend was identified in the National University of Singapore (NUS) Singapore Residential Price Index (SRPI), developed by the Institution of Real Estate Studies. Unlike the cost index of URA, SRPI is a regular monthly index that only looks at the cost motions of private non-landed residential properties. Specifically, for private non-landed residential properties, the URA index shows a price boost of 0.5 per cent for 2 successive quarters (ie.
At the same time for Singapore's public housing landscape, the HDB Resale Price Index showed a stable rise in HDB resale rates from the first quarter of this year; with numbers standing at 0.6, 1.3 and 2 per cent for the first, 3rd and 2nd quarters, respectively
Based upon a research by a NUS wear, Assoc Prof Tilak Abeysinghe, Singapore's real estate rates have been rising above the budget friendly level of a 4 per cent boost every year. This number is reached based on the lifetime incomes of Singaporeans.
"The real typical cost of both private and HDB facilities has actually increased by about 11 per cent a year because that time [sic mid-2006], higher than the trend cost boost of about 8 per cent a year." ("Inflated Housing Prices Should Ease").
The constant boost in real estate rates, coupled with quantitative relieving policies in the US, Japan and Europe, have propelled the Governments in Singapore, Malaysia and Hong Kong to execute cooling measures to avoid property buyers from over-stretching themselves. It stays to be seen if this newest round of cooling measures will show efficient in reining in rates. Resource for this article - Singapore Real Estate Listings.
On a more positive note, according to Assoc Prof Tilak Abeysinghe:.
"As real estate supply improves over the next couple of years and the immigrant population declines, we can anticipate house cost inflation to be up to a budget friendly trend rate like 4 per cent." ("Inflated Housing Prices Should Ease").
On a similar note, URA's newest figures for October exposed that sales volume for private houses have dipped. Sales figures - omitting executive condos - showed a 26 per cent month-on-month decline.
Looking ahead, even more property launches are expected before the close of the year, however experts are anticipating sales to continue to moderate because of the festive mood, tighter loan regulations and as buyers take stock of advancement in the property market.