Private home prices up 3.2 per cent in Q1, driven by surge in landed prices and more new launches - The Straits Times

SINGAPORE - Private home prices gained 3.2 per cent in the first quarter of 2023 even as sales dropped, fuelled by a surge in landed property prices and overall growth in non-landed prices, particularly in the city fringe.

This is in stark contrast to the tepid gain of 0.4 per cent in fourth quarter 2022. Year-on-year, prices rose by 11.3 per cent last quarter, according to flash estimates released by the Urban Redevelopment Authority (URA) on Monday, which are based on data till mid-March.

Private housing sales fell for a second straight quarter, with transaction volumes dipping 8 per cent in the first quarter and by about 38 per cent on year on year, as affordability declined in the face of higher interest rates and rising prices.

Nonetheless, prices got a boost from more property launches, said Huttons’ senior director of research Lee Sze Teck. He noted that most buyers seem unfazed by the marginal increase in Buyer’s Stamp Duty for pricier properties announced in February.

The city fringe area outperformed other submarkets with a 4 per cent jump in prices in the first quarter, up from 3.1 per cent in the previous quarter, thanks to robust sales at Terra Hill in Pasir Panjang at a median selling price of $2,699 psf.

Prices in the suburbs rebounded 1.9 per cent from a drop of 2.6 per cent, as new launches Sceneca Residence and The Botany @ DairyFarm booked good sales on launch day, with HDB upgraders underpinning demand, Mr Lee said.

In the prime district, prices gained 1 per cent in the first quarter, up from 0.7 per cent in the previous quarter.

Landed prices surged 5.7 per cent in the first quarter, up from a 0.6 per cent increase in fourth quarter 2022. Based on URA Realis records, 26 landed properties and condominiums were sold for at least $15 million last quarter, noted OrangeTee & Tie’s senior vice-president of research and analytics Christine Sun.

A 6,286 sq ft new freehold condominium at Les Maisons Nassim transacted at $36 million, or $5,727 psf, in February this year. A sprawling 25,683 sq ft bungalow in Wilkinson Road was sold for $55.5 million or $2,161 sq ft in January.

Last quarter’s non-landed price increase of 2.5 per cent, up from 0.3 per cent, was driven by a higher proportion of new home sales, Ms Sun said.

According to URA Realis, new homes, excluding ECs, made up 33.4 per cent of total sales last quarter, up from 18.9 per cent in the preceding quarter. Resales, however, dipped to 62.4 per cent from 76.1 per cent over the same period, she added.

Moreover, private homes costing at least $2 million accounted for a higher proportion of total sales (excluding ECs) at 40.7 per cent, up from 37.9 per cent in fourth quarter 2022.

Private homes costing at least $5 million rose from 6.6 per cent in Q4 2022 to 7.8 per cent in Q1 2023, Ms Sun said.

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