{"id":102270,"date":"2018-12-14T12:16:45","date_gmt":"2018-12-14T05:16:45","guid":{"rendered":"http:\/\/www.siamlandbank.com\/propertynews\/property-news\/high-correlation-between-economy-and-home-price-growth\/"},"modified":"2018-12-14T13:03:04","modified_gmt":"2018-12-14T06:03:04","slug":"high-correlation-between-economy-and-home-price-growth","status":"publish","type":"post","link":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/high-correlation-between-economy-and-home-price-growth\/","title":{"rendered":"High correlation between economy and home price growth"},"content":{"rendered":"


\nNew data shows that home prices are dragged down by a sluggish GDP growth.
\nThere is a relatively high correlation between the city-state\u2019s home price increase and real economic growth, reported Singapore Business Review, citing a chart from OCBC Investment Research (OIR).
\nSource: URA, Bloomberg and OIR
\nThe above chart shows that home prices are dragged down by a sluggish growth in gross domestic product (GDP). The research house calculated that the correlation between both figures stood at 0.74 in the past 14 years.
\nGiven the high correlation, OIR believes that private home price growth for the whole of 2018 will hover at the lower-end of 8.0 percent to 10 percent.
\nGet more details on the property market outlook for 2019 here
\n\u201cMoving into 2019, we are projecting price growth to range between -3.0 percent to +2.0 percent as slower economic growth and the deluge of new launches may act as a dampener on home prices,\u201d said the research house.
\nIn terms of transaction volume, OIR expects private home sales to reach 8,000 to 10,000 units this year, then rise to about 10,000 to 12,000 units by 2019. This is on the back of Bloomberg\u2019s consensus projection that Singapore\u2019s GDP will expand by 3.3 percent in 2018, then moderate to 2.7 percent next year.
\nHome buyers looking for\u00a0Singapore Properties\u00a0may like to visit our\u00a0Listings,\u00a0Project Reviews\u00a0and\u00a0Guides.
\n\u00a0
\nRomesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories, email\u00a0romesh@propertyguru.com.sg
\n
\nSource : proppertyguru.com.sg\/Property Market
\nRead more…High correlation between economy and home price growth<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

New data shows that home prices are dragged down by a sluggish GDP growth. There...<\/p>\n","protected":false},"author":1,"featured_media":102271,"comment_status":"false","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":"","jetpack_publicize_message":"","jetpack_is_tweetstorm":false,"jetpack_publicize_feature_enabled":true},"categories":[1],"tags":[],"class_list":["post-102270","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-property-news"],"jetpack_featured_media_url":"https:\/\/i1.wp.com\/www.siamlandbank.com\/propertynews\/wp-content\/uploads\/2018\/12\/Home-price-growth.jpg?fit=624%2C312&ssl=1","jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p75ss1-qBw","jetpack-related-posts":[{"id":102646,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/economic-growth-eases-to-2-2-in-q4\/","url_meta":{"origin":102270,"position":0},"title":"Economic growth eases to 2.2% in Q4","date":"January 3, 2019","format":false,"excerpt":"\r There are signs of slowing growth and worries over worsening trade conflicts and major uncertainties. 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