URA: Private property prices up

The Urban Redevelopment Authority (URA) released today the flash estimate of the price index of private residential property for 4th Quarter 2010.

Based on the estimated price index of private residential property, prices rose from 189.6 points in the 3rd Quarter 2010 to 194.8 points in the 4th Quarter 2010. This represents an increase of 2.7%, compared with 2.9% in the previous quarter (see Annex A). For the year 2010 as a whole, the price index has increased by 17.6%.

URA also released today the flash estimates of the price changes in the 3 geographical regions for 4th Quarter 2010. Prices of non-landed private residential properties increased by 2.3% in Core Central Region, 1.7% in Rest of Central Region and 1.6% in Outside Central Region in the quarter (see Annex B). In comparison, for 3rd Quarter 2010, prices of non-landed private residential properties increased by 1.6% in Core Central Region, 2.3% in Rest of Central Region and 2.2% in Outside Central Region. For the year 2010 as a whole, prices increased by 14.3%, 17.5% and 14.5% in Core Central Region, Rest of Central Region and Outside Central Region respectively.

The flash estimates are compiled based on transaction prices given in caveats lodged during the first ten weeks of the quarter supplemented by information on the number of new units sold. The statistics will be updated 4 weeks later when URA releases the full 4th Quarter 2010 real estate statistics, when more data on the caveats lodged and the take-up of new projects are captured. 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. The public is advised to interpret the flash estimates with caution.
URA will continue to release relevant property market information in a timely manner to allow the public to make informed decisions.   On the supply side, the statistics on private residential units in the pipeline, which were last released in October 2010, will be updated in the 4th Quarter 2010 Real Estate Statistics to be released on 28 January 2011.  

via URA

Singapore property and bubbles

Is a bubble forming in Singapore property? That is the question CNBC asks Chris Fossick, MD of Jones Lang LaSalle South East Asia. The short answer: unlikely.
For those who are too lazy to watch the video to the end, a quick summary:

• Sale volumes are expected to go up because of population rise
• The strong economy will fuel demand
• The Govt is mainly concerned about mass market sector
• So far Singapore's transaction values are down 30%, so it is not worrying
• There is a lot of supply and unsold units, prices will not run away
• Developers are holding back high end units because they think that market is not as robust yet
• 'Prices need to be running away faster than they are now' for authorities to take action
• Suggests to increase the supply of land to influence the market
• It is difficult to come up with measures to temper demand