CCR
RCR
OCR
Source: URA
Market Outlook
These developments can be attributed to the consistent efforts by property developers to offer appealing projects that cater to current market demands. This steady growth is an encouraging sign for those invested in the Singapore property market and highlights the continued potential for positive returns.
Key takeaway
- The URA has released the flash estimate of the price index for private residential property for the fourth quarter of 2020, indicating a 2.1% increase from the previous quarter.
- The overall private residential property index has increased by 3.2 points, from 153.8 points in Q3 2020 to 157.0 points in Q4 2020, with prices rising by 2.2% for the whole of 2020 compared to a 2.7% increase in 2019.
- Non-landed private residential property prices in the Core Central Region (CCR) saw a 3.3% increase, compared to a 3.8% decrease in the previous quarter. Meanwhile, prices in the Rest of Central Region (RCR) and Outside Central Region (OCR) increased by 4.8% and 1.7% respectively.
- For the whole of 2020, prices in CCR decreased by 0.2%, while prices in RCR and OCR increased by 5.1% and 3.1% respectively.
- The URA advises caution when interpreting the flash estimate, as past data have shown significant differences between the quarterly price changes indicated by the flash estimate and actual price changes when the change is small.
According to the Urban Redevelopment Authority’s (URA) flash estimate, private residential property prices in Singapore saw a steady growth in the fourth quarter of 2020. Prices increased by 2.1% compared to the previous quarter’s 0.8% growth. Overall, the private residential property index rose by 3.2 points, from 153.8 points in Q3 2020 to 157.0 points in Q4 2020. This marked a 5.1% year-to-date increase and continue to break historical highs. Although the growth was slightly slower than the URA’s initial estimate, it still shows a positive trend in Singapore’s residential property market. Despite limited project launches and slower home sales, private residential property prices have demonstrated resilience in the face of the deep recession.
The flash estimate released by the Urban Redevelopment Authority (URA) has indicated a steady growth in private residential property prices in the fourth quarter of 2020. The overall private residential property index has increased by 3.2 points, from 153.8 points in Q3 2020 to 157.0 points in Q4 2020, representing a 2.1% increase compared to the 0.8% increase in the previous quarter.
Looking at the prices of non-landed private residential properties in different regions, the Core Central Region (CCR) saw a 3.3% increase, compared to a 3.8% decrease in the previous quarter. Meanwhile, prices in the Rest of Central Region (RCR) and Outside Central Region (OCR) increased by 4.8% and 1.7% respectively. However, for the whole of 2020, prices in CCR decreased by 0.2%, while prices in RCR and OCR increased by 5.1% and 3.1% respectively.
It is important to note that the flash estimate is compiled based on transaction prices given in contracts submitted for stamp duty payment and data on units sold by developers up till mid-December. The URA advises caution when interpreting the flash estimate as past data have shown significant differences between the quarterly price changes indicated by the flash estimate and actual price changes when the change is small.
To provide a clearer picture, the following table summarizes the changes in non-landed private residential property prices for the past two quarters:
| Region | Q4 2020 | Q3 2020 |
|---|---|---|
| Core Central Region (CCR) | 3.3% | -3.8% |
| Rest of Central Region (RCR) | 4.8% | 2.5% |
| Outside Central Region (OCR) | 1.7% | 1.7% |
In conclusion, the flash estimate released by the URA indicates a steady growth in private residential property prices in Q4 2020.
