Home Prices Fall After 4yrs

Source : The Straits Times, Oct 2, 2008

HDB resale flat prices still rising but at a slower pace.

PRIVATE home prices in Singapore fell between July and September - the first time in over four years and after almost a year of deadlock between buyers and sellers in which home sales all but dried up.

For the first time since 2006, the URA did not highlight the number of upcoming homes in the flash estimates, after concerns that the large headline supply figures would further dampen already gloomy sentiment. -- ST PHOTO: STEVEN LIM

Official estimates released by the Urban Redevelopment Authority (URA) on Thursday showed that overall prices of private residential properties slided 1.8 per cent in the third quarter, led by homes in the central region, which fell by about 2 per cent.

Suburban home prices, however, held steady with a marginal 0.1 per cent rise.

HDB resale flat prices are also still going strong, but at a slower pace. They rose 4.2 per cent in the third quarter, on top of a 4.5 per cent increase in the second quarter.

So far this year, private home prices have risen 2 per cent, while HDB resale prices have increased 13 per cent.

For the first time since 2006, the URA did not highlight the number of upcoming homes in the flash estimates, after concerns that the large headline supply figures would further dampen already gloomy sentiment.

Instead, the agency said housing supply statistics will be released along with the full set of third-quarter property data at the end of October.

The URA said early estimates showed the price index for private residential properties dropped to 174.3 points from 177.5 in the previous three-month period.

This is the first decline in the index since the first quarter of 2004, amid concerns over the global financial turmoil that has caused home sales to slump.

Private home sales in Singapore plummeted 81 per cent in August from a year ago, to the lowest level since March as a combination of global financial turmoil and the traditionally 'unlucky' Hungry Ghost month spooked buyers.

Poor demand and a looming housing glut are threatening to plunge the property market into a prolonged downturn, which could deal a blow to Singapore's top developers such as CapitaLand, CityDev and Keppel Land.

The advance estimates are compiled from transaction prices lodged during the first 10 weeks of the quarter as well as data from new apartments that have been booked.

The URA will release the official price index in four weeks.