Based on the estimated price index of private residential property, prices rose from 194.8 points in the 4th Quarter 2010 to 198.8 points in the 1st Quarter 2011. This represents an increase of 2.1%, compared with 2.7% in the previous quarter (see Annex A). The rate of price increase has moderated for 6 consecutive quarters, since 4th Quarter 2009.
URA also released today the flash estimates of the price changes in the 3 geographical regions for 1st Quarter 2011. Prices of non-landed private residential properties increased by 0.9% in Core Central Region, 2.2% in Rest of Central Region and 3.1% in Outside Central Region in the quarter (see Annex B). In comparison, for 4th Quarter 2010, prices of non-landed private residential properties increased by 2.2% in Core Central Region, 1.9% in Rest of Central Region and 2.1% in Outside Central Region.
The flash estimates are compiled based on transaction prices given in caveats lodged during the first ten weeks of the quarter supplemented by information on the number of new units sold. The statistics will be updated 4 weeks later when URA releases the full 1st Quarter 2011 real estate statistics, when more data on the caveats lodged and the take-up of new projects are captured. Past data have shown that the difference between the quarterly price changes indicated by the flash estimate and the actual price changes could be significant when the change is small. The public is advised to interpret the flash estimates with caution.
Supply in the Pipeline
As at 4Q2010, there was a total supply of 65,699 uncompleted units from private housing projects in the pipeline.1 Of these, 33,000 units were still unsold. This supply can last for about 3 years based on the historical annual take-up over the past 5 years. This supply also does not take into account new sites that were recently sold2 or will be made available for development through the Government Land Sales (GLS) programme. Prospective home-buyers are advised to take into consideration the ample pipeline supply of private housing, as well as the potential supply of private housing from GLS sites, when making decisions on property purchase.
| 1 | These refer to new development and redevelopment projects with planning approvals, i.e. either a Provisional Permission (PP) or Written Permission (WP). |
| 2 | These refer to new projects for which planning approval have not been obtained yet. |
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