CCR
RCR
OCR
Source: URA
Market Outlook
It is expected that prices of private homes in Singapore will continue to grow modestly over the next two years, rising by about 2%. This growth is indicative of Singapore’s stable and growing economy, making it an attractive destination for property investors.
Key takeaway
- The URA has released its flash estimate of the private residential property price index for Q2 2021, revealing a modest increase of 0.9% compared to the previous quarter’s surge of 3.3%.
- Prices of non-landed private residential properties in the CCR increased by 0.6%, while prices in the RCR and OCR saw smaller increases of 0.3% and 1.8%, respectively.
- The flash estimates are based on transaction prices submitted for stamp duty payment and data on units sold by developers up to mid-June. The actual statistics will be updated later this month, so it’s advisable to interpret these preliminary numbers with caution.
The Singapore private residential property market has shown modest growth in the second quarter of 2021. According to the latest data, prices of private residential properties increased by 0.8% compared to the 3.3% increase in the previous quarter. Similarly, the Singapore Property Sale Price Index saw a quarter-on-quarter growth of 3.69%, significantly higher than the 1.98% growth recorded in the first quarter of 2021. Despite the increase, prices of non-landed private residential properties rose by only 3.67% during the year. It is expected that prices of private homes in Singapore will continue to grow modestly over the next two years, rising by about 2%. This growth is indicative of Singapore’s stable and growing economy, making it an attractive destination for property investors.
The Urban Redevelopment Authority (URA) has released the flash estimate of the price index for private residential property for the second quarter of 2021. According to the report, the private residential property index increased by 1.5 points from 162.2 points in Q1 2021 to 163.7 points in Q2 2021, representing a modest growth of 0.9%. This is a significant slowdown compared to the previous quarter, which saw an increase of 3.3%.
The prices of non-landed private residential properties have also seen varying growth rates across different regions. Prices in the Core Central Region (CCR) have increased by 0.6%, compared to the 0.5% increase in the previous quarter. Meanwhile, prices in the Rest of Central Region (RCR) have increased by only 0.3%, compared to the impressive 6.1% increase in the previous quarter. Prices in Outside Central Region (OCR) have increased by 1.8%, compared to the 1.1% increase in the previous quarter.
It is important to note that the flash estimates are compiled based on transaction prices given in contracts submitted for stamp duty payment and data on units sold by developers up till mid-June. The statistics will be updated on 23 July 2021 when URA releases its full set of real estate statistics for Q2 2021. Past data have shown that 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. Therefore, it is advised that the public interpret the flash estimates with caution.
Overall, the Q2 2021 flash estimate suggests a slowdown in the Singapore private residential property market. While prices in some regions have continued to rise, the growth rate has slowed compared to the previous quarter. Nonetheless, we will have to wait for the full set of real estate statistics to make a more accurate assessment of the market’s performance.
Below is a table comparing the price index of non-landed private residential properties in Q1 2021 and Q2 2021:
| Region | Q1 2021 | Q2 2021 | % Change |
|---|---|---|---|
| CCR | 184.7 | 185.8 | 0.6% |
| RCR | 149.3 | 149.7 | 0.3% |
| OCR | 131.6 | 134.0 | 1.8% |
