THE overall private home price index of the Urban Redevelopment Authority (URA) rose at a slower pace of 0.9 per cent in the second quarter of this year over the previous quarter, compared with the 1.4 per cent quarter-on-quarter (qoq) gain in Q1 2024.
The Q2 increase in the price index released by the URA on Friday (Jul 26) was lower than the 1.1 per cent gain for the flash estimate announced on Jul 1.
The overall rental index for private homes fell for the third consecutive quarter, slipping 0.8 per cent in Q2 2024, following the 1.9 per cent decline in the previous quarter.
URA data showed that prices of landed homes rose by 1.9 per cent in Q2 2024, a moderation from the 2.6 per cent gain in the previous quarter.
Prices of non-landed private homes went up 0.6 per cent in the second quarter, after rising 1.0 per cent in the previous quarter.
URA data on the price performance for non-landed homes by region showed that prices in the Core Central Region (CCR) or prime areas fell 0.3 per cent in Q2, contrasting with the 3.4 per cent increase in the previous quarter.
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In the Rest of Central Region (RCR) or city fringe, prices were up 1.6 per cent in Q2 after having risen 0.3 per cent in the previous quarter.
In the suburbs, or Outside Central Region (OCR), prices inched up 0.2 per cent in Q2, the same as in the previous quarter.
Rentals of landed properties fell 0.9 per cent in Q2, after sliding 4.2 per cent in the previous quarter.
Non-landed residential rentals eased 0.8 per cent in Q2, following the 1.6 per cent decrease in the previous quarter.
In terms of region, rentals of non-landed homes in the CCR dipped 0.1 per cent in Q2, after a 1.6 per cent drop in the previous quarter. In the RCR, rents contracted by 1.4 per cent in Q2 after declining 1.9 per cent in the previous quarter. The OCR posted a rent drop of 1.3 per cent, similar to the 1.4 per cent decline in the previous quarter.
Developers launched 634 uncompleted private residential units (excluding executive condo or EC units) for sale in Q2, about half the 1,304 units launched in the previous quarter. Developers sold 725 private homes (excluding ECs) in Q2, down from the 1,164 units sold in the previous quarter.
ECs are a public-private housing hybrid.
There were 3,802 resale transactions in Q2, higher than the 2,689 units transacted in the previous quarter. Resale transactions accounted for 77.4 per cent of all sale transactions in Q2, up from 63.6 per cent in the previous quarter.
The 388 subsale deals figure in Q2 was slightly higher than the 377 deals in the previous quarter. Subsales made up 7.9 per cent of all sale transactions in Q2, from the 8.9 per cent share in the previous quarter.
A total of 3,339 private residential units (including ECs) were completed in the second quarter. Projects completed include Clavon (640 units), Hyll On Holland (319 units) and Midtown Bay (219 units).
As at the end of Q2 2024, there were 37,768 uncompleted private residential units (excluding ECs) in the pipeline with planning approvals; of that number, 20,566 units remained unsold, URA said.
Based on the expected completion dates reported by developers, 7,675 units (including ECs) will be completed in the second half of 2024, bringing the total supply completions for the whole of 2024 to around 11,300 units.
“A further 26,801 units (including ECs) are expected to be completed between 2025 and 2027, which will help to cater to housing needs in the immediate few years ahead. More supply amounting to about 23,100 units are expected to be completed in 2028 and beyond to cater to demand in the medium term,” URA said.
The stock of completed private residential units (excluding ECs) went up by 1,602 units in Q2, compared with the decrease of 188 units in the previous quarter.
The stock of occupied private residential units (excluding ECs) increased by 4,162 units in Q2, compared with the increase of 5,423 units in the previous quarter.
As a result, the vacancy rate of completed private homes (excluding ECs) dropped to 6.1 per cent as at the end of Q2 2024, from 6.8 per cent in the previous quarter.
“Overall, macroeconomic conditions are sound, but the economic outlook is subject to uncertainties. Domestic mortgage rates are expected to remain elevated, relative to the low levels seen over the past decade,” URA said.
Households should exercise prudence in their property purchases and ensure that they can service their mortgages over the long term, it added.
