Prices of private residential properties rise by 0.7% in Q1

This is a slower pace compared with 5% up in the previous quarter.

The prices of private residential properties, excluding executive condominiums (EC), went up by a slower pace of 0.7% in the first quarter (Q1) of 2022, compared with the 5% increase in the fourth quarter of 2021, the Urban Redevelopment Authority (URA) said.

Specifically, the price rose to 174.8 points in Q1 2022 from 173.6 points in the previous quarter. 

The figures also indicated that prices of landed properties rose by 4.2% in Q1 2022 from a 3.9% increase in the previous quarter.

Compared with the 5.3% increase in the previous quarter, prices of non-landed properties declined by 0.3% in Q1 2022.

Rentals of private residential properties, excluding ECs, went up by 4.2% in Q1 2022, compared with the 2.6% increase in the previous quarter. 

Christine Sun, senior vice president of research and analytics in OrangeTee, said the sluggish increase was due to the implemented cooling measures and macroeconomic uncertainties.

The last quarter's price growth was the slowest price increment since the second quarter of 2020 when prices rose by 0.3%, Sun also noted. 

The inflationary pressures and higher cost of living, Sun said, may cause home prices to increase. With this, the market could shift from a “demand-driven” price increase to a “cost-driven” price hike.