Singapore's sluggish 3rd quarter property markets

All key indicators are down in the doldrums, except one.

Private home prices continue their downhill struggle, as declines continued across all segments of the private residential property market.

The drop in the price index was slightly more than the 0.9% drip last quarter.

According to a release by the Urban Redevelopment Authority, prices of non-landed properties fell 1.2%, 1.6%, and 1.6% for the Core Central Region (CCR), the rest of the Central Region (RCR) and Outside Central Region (OCR) respectively.

These were all greater compared to the declines of 0.6%, 0.6%, and 1.1% respectively in the previous quarter.

Here's more:

Prices of private residential properties are on a downtrend since 4Q2013

Prices of private residential properties decreased by 1.3% in 3Q 2015, compared to the 0.9% decline in the previous quarter.

Source: URA

Rentals of private residential properties are falling since 3Q2013

Rentals of private residential properties fell 0.6% in 3Q2015, compared to the 1.1% decline in the previous quarter.

Source: URA

Take-up rate, excluding ECs, grew by 13.9%

Developers launched 2,387 EC units for sale in 3Q2015 and sold 1,212 EC units over the same period, compared to the 439 units sold in 2Q 2015.

Source: URA

Resale and subsale transactions are down

There were 1,619 resale transactions in 3Q 2015, compared to the 1,827 units transacted in 2Q2015. Resale transactions accounted for 38.9% of all sale transactions in 3Q 2015, compared to the 44.5% in 2Q 2015.

There were 130 sub-sale transactions in 3Q 2015, compared
to the 161 units transacted in 2Q Quarter 2015. Sub-sales accounted for 3.1% of all sale transactions in 3Q 2015, compared to the 3.9% in 2Q 2015.

Source: URA

Looming supply glut next year

Based on the expected completion dates reported by developers, 6,296 units (including ECs) will be completed in the last quarter of 2015. The total number of completions in 2015 would be 22,414 units. Another 27,149 units (including ECs) will be completed in 2016. In comparison, 23,298 units (including ECs) were completed in 2014.

Source: URA

The stock of completed private residential units (excluding ECs) increased by 3,625 units in 3rd Quarter 2015. The vacancy rate of completed private residential units (excluding ECs) decreased to 7.8% at the end of 3rd Quarter 2015, from 7.9% at the end of 2nd Quarter 2015.

Source: URA

Source: Singapore Business Review 23rd October 2015

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Singapore's sluggish 3rd quarter property markets

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