In September, private resale prices for non-owned land in Singapore climbed for the 26th consecutive month, rising 1.7% from a year earlier; transaction volumes reversed August's decline and rose 1.1%.
Transaction volumes are likely to decrease in the coming months due to a new round of cooling measures, but private resale prices remained on the rise in the fourth quarter as demand remains strong, and price gains could reach 15 percent for the year.
According to data released by 99.co and SRX on Oct. 11, resale prices for private homes in non-owned land expanded in September from a 1.1 percent increase in August, compared to a year-over-year increase.
Resale prices increased in all districts in September. The OCR, representing mass-market private housing, rose the most at 2.2%, the CCR, representing high-end private housing, rose the least at 1.1%, and the RCR, representing mid-range private housing, rose 1.3% in other central districts.
Compared to the same month last year, resale prices for private homes rose 11.1% in September, with core central areas up 7%, other central areas up 10.7%, and areas outside of central areas up 12.9%.
The September launches of Lentor Modern and Sky Eden@Bedok were well received, with excess demand for the two new projects pushing up asking prices in the resale market, especially for mass-market private homes.
Despite the firm resale prices, the estimated number of transactions in September increased to 1,331 units, 1.1% more than the 1,317 units in August. In terms of regional distribution, 60.9% of transactions were mass-market private homes, 23% were from mid-range private homes and 16.1% were from high-end private homes.
The new cooling measures will temporarily boost demand, but with limited new supply of popular private homes, potential buyers may turn to the resale market.
On September 30, the government implemented a series of measures to cool down the property, including a 15-month waiting period for private homeowners to buy non-subsidized resale HDB flats after selling their homes.
With the 15-month waiting period, some owners of large HDB flats may need longer to sell their HDB flats before they can buy private homes. Private homeowners are also suspending their plans to sell their private homes because they cannot buy a home right away.
Due to the booming rental market, homeowners who enjoy high rental returns are very reluctant to sell their private homes, especially those who have just renewed their leases at higher rents.
Supply in the private residential resale market may be dampened by the new measures, but demand remains strong and resale prices will continue to climb in the fourth quarter. Resale prices for private homes are expected to rise 15% this year.
