MARKET OUTLOOK 2Q 2019
PRODUCED BY ERA REALTY RESEARCH & CONSULTANCY
While the HDB resale price index continued to stabilize in the second quarter of 2019 with a downwards bias, the overall price of private residential real estate recovered after initial weaknesses following the tighter market curbs in July 2018. The strength of the housing demand is illustrated by the increase in the transaction volumes of both HDB resale flats and private homes, despite the cooling measures.
HDB RESALE MARKET 2Q 2019
One of the reasons behind the gradual drop in prices is the competition from the steady supply of relatively cheaper HDB Built-to-Order (BTO) flats released by the government. An estimated 14,500 BTO units will be released in 2019, with 6,600 units
already made available in 1H 2019
HDB RESALE VOLUME
The number of recorded transactions of HDB resale flats has increased steadily since 2014 partly due to
Among the different type of flats, the larger flats, such as 4-room flats to Executive Flats, were more widely transacted in the second quarter, where their resale volume increased between 30% to 40% qoq.
The total number of approved HDB rental transactions increased 4.8% qoq to 12,335 in 2Q 2019. The health of this rental market is also reflected by the 2.6% yoy increase in volume.
HDB RESALE MARKET OUTLOOK
In May 2019, the government changed the rules regarding the use of the homebuyers’ CPF funds for the purchase of older leasehold residential housing and HDB flats. The revised CPF policy favours middle-aged HDB home owners or those who wish to use less of their CPF funds to buy older resale HDB flats. This could increase the demand for older HDB flats and removed one of the factors that causes the downwards price pressure.
HDB resale flats will remain attractive to buyers who are upgrading or who need to move to
The number of HDB resale flats that exchanged hands in the first half of 2019 is 6.8% higher than in 1H 2018. If the current momentum continues, the total resale volume in 2019 could be 3% to 5% higher than the previous year.
PRIVATE RESIDENTIAL PROPERTY MARKET 2Q 2019
PRIVATE RESIDENTIAL PROPERTY PRICE TREND
The Singapore private residential real estate market showed signs of improvement in 2Q 2019 after the malaise following the July-2018 market curbs. The private residential property price index increased 1.5% qoq or 1.2% yoy in the second quarter of 2019. The growth in the price index was greater than contraction in the period following the 2018 tightening of the cooling measures.
The overall price increase in 2Q 2019 was led by the average non-landed residential prices, which expanded 2.0% qoq, while the landed housing price index slipped by 0.1% qoq over the same period.
The comparatively higher rate of price increase in the CCR and RCR was the result of the large
number of new projects launches within these localities. In 2017 and 1H 2018, many of the residential collective or en bloc sales were transacted in the CCR and RCR at increasing land prices. Due to the higher land costs, the developers need to launch the new residential projects at relatively higher prices compared to previous launches in the respective location.
PRIVATE RESIDENTIAL PROPERTY RENTALTREND
Mirroring the price index, the expansion of the private residential property rental index was also led by non-landed property rentals, which increased by 1.4% qoq in the second quarter of this year. The rate of increase in 2Q 2019 was also higher compared to the 1.1% qoq increase in 1Q 2019.
Among the three market segments, the growth of non-landed residential rentals was the fastest in the CCR with 1.5% qoq, followed closely by the RCR with 1.4% qoq increase and OCR with 1.2% qoq increase.
PRIVATE RESIDENTIAL PROPERTY DEMAND AND SUPPLY
In 2Q 2019, developers launched a total of 2,502 units across 16 projects, 487 units fewer than the number of units launched for sale in 1Q 2019. However, year on year, it is 2.7% higher than 2Q 2018. The new projects launched in 2Q 2019 are shown in the following table.
RESIDENTIAL PROJECT LAUNCHED IN 2Q 2019
|Project Name||Road Name||No. Of Units||Name Of Developers||Launch Date|
|Coastline Residences||Amber Road||144||Sustained Land Pte Ltd||April 2019|
|Mayfair Modern||Riffle Range Road||171||Oxley Holdings||April 2019|
|Wilshire Residences||Farrer Road||85||Tong Eng Group / Roxy Pacific Holdings/ KSH Holdings||April 2019|
|Amber Park||Amber Gardens||592||City Developments Limited / Hong Realty||May 2019|
|Juniper Hill||Ewe Boon Road||115||Allgreen Properties||May 2019|
|Meyerhouse||Meyer Road||56||UOL Group / Kheng Leong||May 2019|
|Olloi||Lorong 101 Changi||34||Cicada Private Limited||May 2019|
|Parc Komo||Upper Changi Road North||276||CEL Development||May 2019|
|Riviere||Jiak Kim Street||455||Frasers Property||May 2019|
|The Gazania||How Sun Drive||250||Singhaiyi Group||May 2019|
|The Hyde||Balmoral Road||117||Aurum Land||May 2019|
|The Lilium||How Sun Road||80||Singhaiyi Group||May 2019|
|Lattice One||Seraya Crescent||48||TEE Land||June 2019|
|Seraya Residences||Seraya Lane||17||Macly Group||June 2019|
|Sky Everton||Everton Road||262||Sustained Land led consortium||June 2019|
|Sloane Residences||Balmoral Road||52||Tiong Seng Holdings||June 2019|
There was a dearth of new Executive Condominium (EC) project as no new EC development was launched since the Rivercove Residences in 2Q 2018. However, the launch of the 820-unit Piermont Grand EC in 3Q 2019 would break the drought in the EC market. The 99-year leasehold EC project is located at Sumang Walk in Punggol. It is developed by City Developments Limited and TID Residential Pte. Ltd.
PRIVATE RESIDENTIAL PROPERTY OUTLOOK
The private residential price index is projected to end the year 1.5% to 2.5% higher than the previous year, primarily led by prices of private non-landed new launches
A possible reason behind the property price recovery is developers’ sales of units from
Developers sold a total of 4,188 private homes in 1H 2019. The total primary market sales for the whole of 2019 is projected to range from 8,500 to 10,000 units.
HEAD OF RESEARCH & CONSULTANCY
ERA REALTY NETWORK PTE LTD
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