Chart of the Day: Private condo prices up 3.1% in January-September

This is already higher than the projected increase by end-2019.

This chart from Knight Franks reveals that the 3.1% YoY growth of private condo prices for the first nine months of 2019 is already ahead of the projected price expansion of up to 3% YoY by the end of 2019.

“The improvement in sales and price indices suggested that the underlying demand for private homes remain robust despite the weaker outlook of Singapore’s economy. The uncertain external environment is likely to encourage more buyers to enter the market in the immediate future because many buyers perceive Singapore properties as safe assets,” the report read.

Foreign purchases of Singapore properties are expected to continue, as they are attracted by Singapore’s stable political environment, pro-business environment, world-class education system and the relatively strong Singapore dollar against regional currencies.

Also read: Foreigners race for Singapore's luxury properties

Knight Frank expects sales to improve sustainably in Q4 2019, whilst total new sales in 2019 are forecasted to reach 8,000 to 9,000 units. Secondary sales are likely to fall in the range between 7,000 and 8,000 units.

“That said, the additional buyers’ stamp duties are likely to cap any improvement in price,” the report concluded.