Singapore Residential Property Price Index Q1 2018 – Full-year forecasts double after 3.1% jump in Q1 home prices.
Urban Redevelopment Authority’s private home price index based on its first quarter flash estimate has reported an increase of 3.1% for 1st Quarter 2018. This increase has exceeded analysts’ expectations who is expecting a moderate 1-2% increase. The rise is the steepest quarter-on-quarter hike since Q2 2010, when the index rose 5.3 per cent.
The final Q1 private home price data, which URA will release on April 27, could show an even bigger jump than the 3.1 per cent clocked in the flash estimate because the flash estimates are compiled based on transactions data only up to mid-March and The Tapestry was launched on 24th Mar with average selling price at S$1,310 psf.
Leading the increase was the prime area or Core Central Region (CCR), which posted a 5 per cent price jump for non-landed homes in Q1, compared with the 1.4 per cent increase in the previous quarter.
This was followed by a 3.8 per cent price rise in the suburbs or Outside Central Region (again, higher than the 0.8 per cent increase in the previous quarter). In the city fringe or Rest of Central Region (RCR), prices climbed 1.1 per cent, after having risen 0.4 per cent in the previous quarter.
The jump of 3.1% in Q1 has further vindicated that the Singapore Residential Market is on track to recovery after experiencing 15 quarters of negative growth since 2013. And Analysts have now raised their forecast for the full year (2018) to increase by 8-15% from the initial 3-7%.
For buyers who are still waiting on the fences, it is now the right time to enter as the property prices are still expected to go up. It is only the early stages of recovery as Singapore Property Prices are still much lower than that of Hong Kong / London.
Recommendation: Look for existing developments in the markets as typically their price psf will still be lower than that of the new developments (*immediate paper gain). For Example: