URA- Release of 1st Quarter 2015 real estate statistics

The Urban Redevelopment Authority (URA) released today the real estate statistics for 1st Quarter 20151.

PRIVATE RESIDENTIAL PROPERTIES

Private residential market at a glance (excluding ECs):

Prices and Rentals

From 1st Quarter 2015, URA is using a new “stratified hedonic regression methodology” to compute the private residential price and rental indices. The base periods of all existing price and rental indices have also been updated from 4Q1998 to 1Q2009.

Prices of private residential properties decreased by 1.0% in 1st Quarter 2015. This was the sixth straight quarter of price decline.

Property Price Index of residential properties

Price decline was observed across all segments of the private residential property market. Prices of non-landed properties fell 0.4% in the Core Central Region (CCR), 1.7% in the Rest of Central Region (RCR) and 1.1% in Outside Central Region (OCR). Prices of landed properties declined by 0.9% (see Annexes A-1, A-2 &A-62).

Rentals of private residential properties fell 1.7% in 1st Quarter 2015. Rental decline was also observed across all segments of the private residential property market. Rents of non-landed properties fell 1.9% in the Core Central Region (CCR), 1.6% in the Rest of Central Region (RCR) and 1.8% in Outside Central Region (OCR). Rents of landed properties declined by 1.2% (see Annexes A-3 & A-4).

Rental Index of residential properties

Launches and Take-up

Developers launched 1,189 uncompleted private residential units (excluding Executive Condominiums, ECs) for sale in 1st Quarter 2015, lower than the 1,592 units in 4th Quarter 2014 (see Annex C-1).

Developers sold 1,311 private residential units (excluding ECs) in 1st Quarter 2015, lower than the 1,376 units sold in 4th Quarter 2014 (see Annex D).

Number of private housing units launched and sold by developers (excluding ECs)

Developers launched 378 EC units for sale in 1st Quarter 2015 and sold 326 EC units over the same period (see Annex F), significantly lower than the 1,113 units sold in 4th Quarter 2014.

Resales and Sub-sales

There were 1,250 resale transactions in 1st Quarter 2015. Resale transactions accounted for 47.1% of all sale transactions in 1st Quarter 2015 (see Annex D).

There were 94 sub-sale transactions in 1st Quarter 2015. Sub-sales accounted for 3.5% of all sale transactions in 1st Quarter 2015 (see Annex D).

Number of resale and sub-sale transactions for private residential units (excluding ECs)

Supply in the Pipeline

As at the end of 1st Quarter 2015, there was a total supply of 68,2013 uncompleted private residential units (excluding ECs) in the pipeline, slightly lower than the 68,960 units in 4th Quarter 2014 (see Annexes E-1 & E-24). Of this number, 27,061 units remained unsold as at 1st Quarter 2015 (see Annexes B-1 & B-2). After adding the supply of 15,441 EC units in the pipeline, there were 83,642 units in the pipeline.

Based on expected completion dates reported by developers, 21,319 units (including ECs) will be completed in next 3 quarters of 2015. Another 25,769 units (including ECs) are expected to be completed in 2016. In comparison, 23,298 units (including ECs) were completed in 2014.

Pipeline supply of private residential units and ECs by expected year of completion

Note: 2,976 private residential units and 1,136 executive condominiums were completed
(i.e. obtained Temporary Occupation Permit) in 1Q2015.

Stock and Vacancy

The stock of completed private residential units (excluding ECs) increased by 2,821 units in 1st Quarter 2015. The vacancy rate of completed private residential units (excluding ECs) decreased to 7.2% at the end of 1st Quarter 2015, from 7.8% at the end of 4th Quarter 2014 (see Annex E-1).

Stock and vacancy of private residential units (excluding ECs)

OFFICE SPACE

Office market at a glance:

Prices and Rentals

Prices of office space decreased by 0.1% in 1st Quarter 2015, compared with an increase of 2.4% in the previous quarter (see Annex A-1). Rentals of office space rose 0.6% in 1st Quarter 2015, less than the 1.7% increase in 4th Quarter 2014 (see Annexes A-3 & A-5).

Property Price Index of office space

Rental Index of office space in Central region

Supply in the Pipeline

As at the end of 1st Quarter 2015, there was a total supply of about 880,000 sq m GFA of office space in the pipeline (see Annexes E-1 & E-2).

Pipeline supply of office space

Stock and Vacancy

The amount of occupied office space increased by 19,000 sq m (nett) in 1st Quarter 2015, compared to the 6,000 sq m (nett) decrease in the previous quarter. The stock of office space increased by 22,000 sq m (nett) in 1st Quarter 2015, compared to the increase of 145,000 sq m (nett) in the previous quarter. As a result, the island-wide vacancy rate of office space at the end of 1st Quarter 2015 remained unchanged at 10.2% (see Annexes A-5 & E-1).

Stock and vacancy of office space

RETAIL SPACE

Retail market at a glance:

Prices and Rentals

Prices of retail space remained unchanged in 1st Quarter 2015, after an increase of 1.5% in the previous quarter (see Annex A-1). Rentals of retail space decreased by 0.3% in 1st Quarter 2015, compared to the 0.5% increase in 4th Quarter 2014 (see Annexes A-3 & A-5).

Property Price Index of retail space

Rental Index of retail space in Central region

Supply in the Pipeline

As at the end of 1st Quarter 2015, there was a total supply of 723,000 sq m GFA of retail space from projects in the pipeline (see Annexes E-1 & E-2).

Pipeline supply of retail space

Stock and Vacancy

The amount of occupied retail space decreased by 25,000 sq m (nett) in 1st Quarter 2015. The stock of retail space increased by 34,000 sq m (nett) in 1st Quarter 2015. As a result, the island-wide vacancy rate of retail space rose to 6.8% at the end of 1st Quarter 2015, from 5.8% at the end of 4th Quarter 2014 (see Annexes A-5 & E-1).

Stock and vacancy of retail space

Source: URA

PROPERTY LAUNCHES & INVESTMENTS

Property Launches & Investments

URA- Release of 1st Quarter 2015 real estate statistics

PRIVATE RESIDENTIAL PROPERTIES

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