More signs residential market slowing as price rises abate

You may want to hold back on buying that property with latest URA figures showing a slowdown in residential prices, which rose 5.1% in the three months to March compared to 7.4 % in the previous quarter.

Based on the estimated price index of private residential property, prices rose from 165.7 points in the 4th Quarter 2009 to 174.2 points in the 1st Quarter 2010. This represents an increase of 5.1%, compared with 7.4% in the previous quarter (see Annex A).

URA also released the flash estimates of the price changes in the 3 geographical regions for 1st Quarter 2010. Prices of non-landed private residential properties increased by 4.5% in Core Central Region, 7.2% in Rest of Central Region and 3.9% in Outside Central Region in the quarter (see Annex B). In comparison, for 4th Quarter 2009, prices of non-landed private residential properties increased by 7.3% in Core Central Region, 9.5% in Rest of Central Region and 6.3% in Outside Central Region.

The flash estimates are compiled based on transaction prices given in caveats lodged during the first ten weeks of the quarter supplemented by information on the number of new units sold. The statistics will be updated 4 weeks later when URA releases the full 1st Quarter 2010 real estate statistics, when more data on the caveats lodged and the take-up of new projects are captured. Past data have shown that the difference between the quarterly price changes indicated by the flash estimate and the actual price changes could be significant when the change is small. The public is advised to interpret the flash estimates with caution.

URA will continue to release relevant property market information in a timely manner to allow the public to make informed decisions. On the supply side, the statistics on private residential units in the pipeline, which were last released in January 2010, will be updated in the 1st Quarter 2010 Real Estate Statistics to be released on 23 April 2010.