Residential property prices rise for 11 consecutive quarters

Residential property prices of both private properties and HDB resale flats, have risen for 11 consecutive quarters show Government data.

Residential property prices
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The resale price of local HDB flats has risen for 11 consecutive quarters. The last quarter rose by 2.3% quarter-on-quarter, which was the smallest quarterly increase in the whole of last year, and the annual growth rate also slowed down.

Data released by the Housing and Development Board showed that the resale price of HDB flats rose by 10.4% last year, a smaller increase than the 12.7% increase in the previous year.

In terms of transaction volume, 6,597 units changed hands last quarter, a year-on-year decrease of 16.9%. There were 27,896 transactions last year, 10.1% less than the previous year.

Property analysts suggested that price growth of HDB flats actually slowed down in the last quarter probably because the market was responding to government introduced cooling measures in the third quarter. 

HDB will launch 4,400 Built-To-Order (BTO) flats in Jurong West, Kallang Whampoa, Queenstown and Tengah next month.

Another 3,800 to 4,800 BTO HDB flats in Bedok, Kallang Whampoa, Queenstown, Serangoon and Tengah will also be available for purchase in May.

In total, the authorities plan to roll out as many as 23,000 HDB BTO units this year.

Residential property prices have also increased in the private real estate market

Just like HDB resale flats, private home prices have also risen for 11 consecutive quarters. According to data released by the Urban Redevelopment Authority (URA), local private housing prices rose by 0.4% in the last quarter and 8.6% in the whole of last year, both 0.2 percentage points higher than the estimated data.

URA data showed that the increase in the previous quarter had slowed down significantly from the previous quarter’s 3.8%. Last year’s increase was also smaller than the previous year’s 10.6%.

In the last quarter, the price increase of landed private housing slowed down to 0.6%; the increase of non-landed private housing also narrowed to 0.3%; the annual increase was 9.6% and 8.1% respectively.

Among them, non-landed private houses in the core central area increased by 0.7% in the previous quarter; other central areas rose by 3.1%; outside the central area fell by 2.6%; the annual increase ranged from 4.8% to 9.7%.

In terms of rent, the growth rate in the previous quarter was 7.4%, which slowed down quarter-on-quarter; the annual increase was significantly expanded to 29.7%.

Real estate watchers believe that last year’s sales volume was lower than the previous year, mainly because of the lack of new private housing units being launched, especially in the suburbs.

They suggested that housing prices in some areas have also reached record highs. So coupled with the new round of cooling measures last year, it affected the purchasing power of some buyers.

Mr Paul Ho, chief officer of iCompareLoan, said: “Outlook for the continued growth of residential property prices will be challenging this year, in the midst uncertainties and slowing global economic growth.”

“Besides the uncertainties in the world there us also the problem of interest rates which are at levels not seen in decades,” he added.

In such circumstances it is important to have the right home loan. Having the right home loan in a climate of rising residential property prices is important because it can help you to afford the home you want and potentially save you money in the long run.

For example, if you have a fixed-rate mortgage, your interest rate and monthly payments will stay the same even if property prices continue to rise. This can provide stability and predictability in your budget. Additionally, choosing a loan with a low interest rate can also help you to save money on interest charges over the life of the loan.

On the other hand, if you choose a loan with a variable interest rate, your monthly payments could increase if interest rates rise, which could make it more difficult to afford your home. Therefore, it is important to carefully consider the terms and conditions of the home loan you choose in order to ensure that it is the best fit for your financial situation.

Mortgage brokers can help you in a climate of rising residential property prices by providing expertise and guidance on the various home loan options available to you. They can help you to understand the pros and cons of different types of mortgages, such as fixed-rate and variable-rate loans, and can help you to find a loan that is tailored to your financial situation.

Mortgage brokers have access to a wide variety of lenders and loan products, and can help you to compare rates and fees from different lenders. This can be especially useful in a climate of rising residential property prices, where competition for loans can be high and finding the best rate may be challenging.

A mortgage broker can also help you to navigate the mortgage application process, which can be complex and time-consuming. They can help you to gather the necessary documentation, such as proof of income and assets, and can help you to understand the requirements of different lenders. They can also help you to understand and negotiate the terms and conditions of the loan, and can explain any fees and charges that may be associated with the loan.

A mortgage broker can provide valuable expertise and guidance to help you find the right home loan in a climate of rising residential property prices, and can help you to navigate the mortgage application process, saving you time and money.

Written by Ravi Chandran

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