Singapore's private home prices are at their highest in a decade. According to figures released by the Urban Redevelopment Authority (URA) on Friday, private residential home prices rose by 8.3 percent in the third quarter from the previous three-month period.
The jump was just a little higher than the previous estimate of 8 percent.
However, in terms of sales, fewer uncompleted residential units were sold, compared to the previous three months.
The report said there was a 30 percent dip in the number of uncompleted private residential units sold from the previous quarter.
But analysts said that was not alarming given the seventh lunar month.
Tay Huey Ying, Research and Consultancy Director, Colliers International, said: "The third quarter is where the seventh lunar month takes place. Traditionally, it's a rather slow month. Chinese buyers tend to avoid making housing commitments during this period and therefore developers will also tend to scale down launches during this period."
They noted that sales were still 64 percent higher than a year ago.
Private apartments in the core prime districts continued to lead price increases, with a jump of 8.3 percent, but higher prices are also seen elsewhere.
Mr Tay said: "The high-end as well as luxury home has actually been leading the price increase prior to 2007. But from 2007, in fact, from January this year we are already seeing home prices in the mid-tier as well as the mass market catching up very fast."
The number of residential units in the pipeline stands at more than 65,000, about 16 percent higher than three months ago.
But analysts said they see prices continuing to push upwards.
Mr Tay said: "The number of residential homes scheduled for completion next year stands at 5,500 units. If we take into consideration that... quite a number of homes will be demolished due to the collective sale, the overall number could hover around 3,500 for next year.
"This is actually quite low in comparison to the average of the last five years prior to the collective sale fever, which stands at around 7,500 or so.
"So I think if we look at this scenario... what it goes to show is that perhaps next year the supply of homes for rental and occupation will continue to remain very tight. Rents and prices will continue to surge for next year."
Meanwhile, private home rents rose by 11.4 percent in the third quarter, while office rentals climbed by 14.8 percent. - CNA/ch
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