Private Residential Property Price Index Shows Upward Trend

Urban Redevelopment Authority (URA) flash estimates reveal an increase of 2.1% from Q3 to Q4 2020 in the overall private property price index, continuing the upward trend from an increase of 0.8% in Q3 2020. Prices of non-landed properties grew by 3.2% Q-o-Q in Q4, the steepest quarterly increase since Q2 2018, when prices increased 3.4%. Overall prices increased 2.2% despite the severe economic downturn, as compared to 2.7% in 2019, signaling a strong underlying demand in Singapore.

In Q4, prices of non-landed homes in the city fringe or rest of the central region (RCR) saw the greatest increase, with an increase of 4.8% Q-o-Q, as compared to 2.5% in Q3. In the prime areas or the core central region (CCR), prices increased 3.3%, a reversal from the 3.8% decline in the previous quarter. Meanwhile, prices rose 1.7% each in Q4 and Q3 in the suburbs or outside the central region (OCR).

Overall, in 2020, prices of non-landed properties in CCR decreased by 0.2%, but rose by 5.1% in RCR and 3.1% in OCR. Prices of landed properties dipped 2.1% in Q4 relative to the 3.7% increase in Q3. With the distribution of vaccines and opening of Phase 3, we may see the stabilization of the economy and subsequently the rise of buyer sentiments, leading to the rise in property prices in the longer term.