By Romesh Navaratnarajah:Singapore's private residential property index climbed to 211.9 in Q4 2012 from 208.2 in Q3. This is a hike of 1.8 percent compared to the 0.6 percent increase in the previous quarter, according to flash estimates released today by the Urban Redevelopment Authority (URA).
For the whole year, prices of private homes grew by around 2.8 percent, based on initial flash estimates. This is considerably lower than the 5.9 percent uptick seen in 2011.
In Q4, prices of non-landed private homes inched up by 0.8 percent in the Core Central Region (CCR) compared to 0.1 percent previously. At the same time, prices in the Rest of Central Region (RCR) rose by 0.9 percent versus 0.8 percent in the previous quarter, while in the Outside Central Region (OCR), prices climbed by 3.4 percent from Q3's one percent.
"Private property prices in Q4 certainly saw a rebound with the price increase in the fourth quarter contributing to more than 50 percent for the entire year," said Mohamed Ismail, Chief Executive of PropNex Realty.
"Prices in the OCR were leading the price growth with an overall sharp rise of six percent for 2012 compared to the other regions. It is expected that the trend will continue in 2013 with OCR prices likely to surpass 2012's increment attaining close to 10 percent price increment. This is mainly contributed to the aggressive high land bid prices witnessed in the second half of 2012."
Moving forward, private property prices are expected to increase further in 2013, leading to an overall growth of between four and five percent in the index for the whole year, added Ismail. Romesh Navaratnarajah, Senior Editor of PropertyGuru, wrote this story. To contact him about this or other stories email firstname.lastname@example.org Related Stories: The lure of ECs
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