Singapore Private residential property market registers first full year of price decline in five years – Iskandar follows suit…
Price correction seen in all three market segments.
The year 2014 ended on a sombre note for Singapore’s private
residential property market as it finally succumbed to the raft
of cooling measures and recorded its first year of price decline
following five consecutive years of price uptrend.
According to the Urban Redevelopment Authority (URA)’s
preliminary estimates, after climbing by a total of 62.3% over
the last five years, prices of Singapore’s private residential
homes islandwide finally buckled in 2014, easing by 4.0%
on a year-on-year (YoY) basis. This came on the back of the
fifth straight quarter of price decline in 4Q 2014, by 1.0% on a
quarter-on-quarter (QoQ) basis.
The price correction in 4Q 2014 was broad-based with midtier
non-landed homes in the Rest of Central Region (RCR)
sustaining the largest quarterly fall of 1.2% following 3Q 2014’s
QoQ decline of 0.4%. Prices of non-landed homes in both
Outside Central Region (OCR) and Core Central Region (CCR)
slipped by 0.9% QoQ each in 4Q 2014, following a quarterly
moderation of 0.3% and 0.8%, respectively, in 3Q 2014.
For the year as a whole, prices of non-landed homes in the
RCR again chalked up the largest erosion of 5.2%, followed by
those of CCR which edged down by 4.1%. Supported by more
affordable prices and a wider demand base, prices of homes in
the OCR proved to be the most resilient, slipping the least, by
2.2% for the whole of 2014.
As for the luxury and super-luxury apartments located within
the CCR, Colliers International’s research showed that these
posted a 0.6% QoQ decline in prices to average at $2,750 per sq
ft in the October to December quarter after falling 2.1% in the
preceding quarter. This culminated in a pronounced full-year
decline of 7.4% in 2014, up markedly from the 1.6% YoY slip in
The buckling of private home prices was the result of successive
quarters of subdued home-buying sentiments as the effects of
the Total Debt Servicing Ratio (TDSR) framework implemented
in June 2013 filtered through the market. Sales activity remained
muted in 4Q 2014 even as developers homed in on the window
of opportunity to release new units in October and November,
ahead of the year-end festive and holiday season which fully
kicks off in December.
The parallel and positive co-relation between Singapore and the less transparent Iskandar market is very evident that Singapore has to recover and grow again before we can feel the positive spillover effects again….stay tuned for 2017 for the rally to start again….
As in Singapore, its a good time to fish for good purchases in Iskandar Malaysia to hold for the medium and long haul….