Housing alert: Rate of price increase continues to moderate

For 2011, prices of private residential properties increased by 5.9%, significantly lower than the 17.6% increase in 2010.

The Urban Redevelopment Authority, releasing the real estate statistics for 4th Quarter 2011, said:

The rate of price increase has continued to moderate for nine consecutive quarters. Prices of private residential properties increased by 0.2% in 4th Quarter 2011, lower than the 1.3% increase in the previous quarter and is the smallest increase since 3rd Quarter 2009.

For the year 2011 as a whole, prices of private residential properties increased by 5.9%, significantly lower than the 17.6% increase in 2010. All property segments experienced a slower rate of price increases compared to the previous quarter and previous year.

Prices of non-landed properties in Core Central Region (CCR) increased 0.5% in 4th Quarter 2011, compared with the 0.7% increase in the previous quarter. For Rest of Central Region (RCR) and Outside Central Region (OCR), prices increased by 0.1% and 0.6% respectively in 4th Quarter 2011, lower than the corresponding increases of 1.2% and 2.1% in the previous quarter.

For the year 2011 as a whole, prices of non-landed properties increased by 4.0% in CCR, 4.5% in RCR and 7.7% in OCR, compared with 14.2%, 17.6% and 15.0% respectively in 2010.

Similarly, rentals of private residential properties registered a lower rate of increase compared to the previous quarter and year. Rentals increased by 0.4% in 4th Quarter 2011, less than the 0.8% increase in the previous quarter.

For the year 2011 as a whole, rentals of private residential properties increased by 3.8%, lower than the 17.9% increase in 2010.