Property prices hit highest quarterly increase in 2012

To buy or not to buy?

According to Knight Frank, according to URA’s Flash estimate, overall property prices increased 0.5 per cent on a quarterly basis, the highest increase in 2012.

The price increase was mainly attributed to home transactions in Outside Central Region where prices of non-landed residential properties rose 1.0 per cent quarter-on-quarter (q-o-q), followed by Rest of Central Region (0.7 per cent q-o-q) and Core Central Region (0.4 per cent q-o-q).

The higher prices were recorded in both new sale and resale markets as interest in the secondary market is fast catching up with the primary market. Many buyers switched to resale properties for value buys amid new price records in recent project launches.

The persistent price increase in the OCR might have disappointed some first time homebuyers who are not eligible for public housing or Executive Condominiums and are looking for affordable private homes.

Highest Price Increase in Mid-Market: Based on Knight Frank’s residential property basket, prices of mid-tier and mass market properties increased 4.8 per cent and 3.0 per cent q-o-q, respectively.

Mid-market homes were transacted at $1,609 per sq ft while mass market homes were transacted at $1,038 per sq ft on average in 3Q 2012. Prices of high-end properties decreased 0.7 per cent q-o-q to $2,245 per sq ft in 3Q 2012.