Private Residential Property Index Continues Upward Trajectory in Q3 2021, But with Varied Price Movements Across Regions

The private residential property index in Singapore continued its upward trend in the third quarter of 2021, according to real estate statistics. However, there were varied movements in prices across different regions. In the Core Central Region (CCR), prices increased by 1.1% compared to a 0.5% increase in the Rest of Central Region (RCR) and a 3.4% increase in the Outside Central Region (OCR). The marginal growth in OCR is in stark contrast to the past two quarters when private home prices grew by 3.8% in Q3 2022 and climbed 8.2% from January to September 2022. Nonetheless, this upward trend aligns with URA’s private residential price index that rose by 0.8%, and compared to the private residential segment, there is still a higher increase in average price, but transaction volume did not decline as rapidly. While there is variability in pricing movements, the overall trend suggests sustained interest and growth in the private residential property market.

In the third quarter of 2021, the private residential property index in Singapore continued on an upward trend, according to the flash estimate released by the URA. The overall private residential property index rose by 0.9% compared to the previous quarter, indicating continued demand for private residential properties despite the ongoing pandemic.

However, the price movements across regions were mixed. Prices of non-landed private residential properties in the Rest of Central Region (RCR) saw a significant increase of 2.2% in Q3 2021, compared to the modest 0.1% increase in the previous quarter. This surge in prices may be attributed to the area’s popularity among property buyers due to its proximity to the city center.

On the other hand, prices of non-landed private residential properties in the Core Central Region (CCR) decreased by 0.6% in Q3 2021, compared to a 1.1% increase in the previous quarter. This could be due to a slight drop in demand for high-end properties in the city center, possibly as a result of the pandemic’s economic impact.

It is important to note that the statistics are based on a flash estimate, which is compiled based on transaction prices given in contracts submitted for stamp duty payment and data on units sold by developers up till mid-September. Therefore, the public is advised to interpret the flash estimates with caution as the difference between the quarterly price changes indicated by the flash estimate and the actual price changes could be significant when the change is small.

For a more accurate understanding of the property market, one should wait for URA’s full set of real estate statistics for Q3 2021, which will be released on 22 October 2021.

Comparison Table:

Region	Q3 2021 Price Change	Q2 2021 Price Change
Core Central Region (CCR)	-0.6%	+1.1%
Rest of Central Region (RCR)	+2.2%	+0.1%
Outside Central Region (OCR)	-0.2%	+1.9%