The private residential property index increased 1.2 points from 152.6 points in 2nd Quarter 2020 to 153.8 points in 3rd Quarter 2020, according to the flash estimate released by the Urban Redevelopment Authority (URA).
Based on sales registered up to mid-September, the flash estimates showed that a 0.8% q-o-q increase in the price index, driven mainly by landed homes. The price index of non-landed homes remained largely unchanged from Q2 because the increase in prices in RCR and OCR was eliminated by the relatively large drop in prices in CCR.
While prices of new launches in RCR and OCR have crept up in Q3, supported by strong demand, resale prices of CCR homes registered a fall of around 13% to $1,771 psf. This could be attributed to the dominance of older homes sold over new homes, as well as some innovative pricing packages by developers to sell completed units.
To date, the URA price index reflects a 0.1% increase from end-2019 price levels, subject to the final price index to be released by URA on 23 October. With around 7,500 units new sales and 4,700 resales up to end-September, the market has performed relatively better than market expectation, in the midst of a pandemic.