Private Home Price Decline is the steepest since 2013. This made it even more uncertain if earlier signs of a bottoming-out in prices can continue amid mounting concerns over the state of the economy and employment.
12 consecutive quarters in decline culminated to a 10.8 per cent drop in prices and a 10.7 per cent fall in rents since the peak of Q3 2013. Prices and rents had slipped by a more moderate 0.4 per cent and 0.6 per cent respectively in the second quarter.
URA’s Q3 data included, for the first time, the net prices of de-licensed projects, which refer to those that have obtained the Certificate of Statutory Completion (CSC) and have individual strata titles issued to buyers.
While this tweak could have contributed to the steeper price fall, there is growing concern that the spate of negative news on the economy and the jobs market may be hurting buying sentiment.
One factor e.g. is with foreigners bearing the brunt of job losses, the softening employment market is hurting residential leasing.
URA data shows that the price decline in private homes in Q3 was led by landed properties, which fell 2.7 per cent, after a 1.5 per cent decline in Q2.
Non-landed properties dropped 1.2 per cent in price, after a 0.1 per cent dip in Q2. Those in the prime area or the Core Central Region (CCR) fell the most, 1.9 per cent, after inching up 0.3 per cent in each of the two preceding quarters.
Non-landed property prices in the city fringe or the Rest of Central Region (RCR) slipped by one per cent in Q3, after a 0.2 per cent increase in Q2; non-landed property prices in suburban areas or the Outside Central Region (OCR) also slipped one per cent, after dipping 0.5 per cent in Q2. Rental decline was most pronounced in the OCR at 2.4 per cent over the previous quarter.