2011 Q2 Property Market

Snippet from Channelnewsasia
July 22, 2011

HDB PROPERTY

Prices of HDB resale flats rose a steeper 3.1 per cent in the second quarter compared to the 1.6 per cent increase seen in the first quarter.

The number of transactions rose by about 6 per cent to some 6,600.

HDB's Resale Price Index rose to 180.3 points in the second quarter from 174.8 points a quarter ago.

Analysts believe this is due to a supply crunch of resale flats. They said this is partly brought on by policy measures to cool down the private property sector.

PRIVATE PROPERTY

Private home prices in Singapore rose at a slower pace of 2 per cent in the second quarter, according to statistics from the Urban Redevelopment Authority (URA).

This was in line with the flash estimates which showed a 1.9 per cent increase as announced earlier.

The property price index stood at 203 points in the second quarter.

In the previous quarter, the price index grew 2.2 per cent to 199.1 points.

URA said the rate of price increase has moderated for seven straight quarters, since the fourth quarter of 2009.

For the second quarter of this year, non-landed residential properties in the prime city area, or core central region, increased by 1.6 per cent.

The city fringe areas, or rest of central region, posted a 1.1 per cent increase.

Suburban areas, or outside central region, also showed an increase of 1.7 per cent.

URA said that the supply of residential units in the pipeline continues to build up.

There was a total of 71,111 uncompleted private homes at the end of the second quarter.

This was higher compared to the 68,887 units in the first quarter.

Analysts said they expect private home prices to moderate further, increasing 7 per cent in the whole year.

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