Desmond Sim, Head of Research, Singapore & Southeast Asia
Based on the preliminary estimates released by the URA for Q3 2018, the private residential property index increased by 0.5% to 149.7, compared to the 3.4% increase in the previous quarter. This is a clear indicator that the cooling measures which took effect on 6 July 2018 have managed to curtail the exuberance in the market.
Nonetheless, prices in the CCR still registered a healthy 1.2% increase, while prices in the RCR have bucked the trend to register a decline of 0.8%. There has been anecdotal evidence that some previously launched residential projects has softened slightly on their pricing in order to move units.
Nevertheless, CBRE maintains a 8-10% overall increase for the property price index (PPI) in 2018, on the back of upcoming launches acquired at higher land costs. While prices in psf are expected to continue to drive the PPI, new sales have been driven by the total price quantum supported by smaller unit sizes.
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