{"id":111506,"date":"2019-10-11T10:45:02","date_gmt":"2019-10-11T03:45:02","guid":{"rendered":"http:\/\/www.siamlandbank.com\/propertynews\/property-news\/hike-in-private-home-prices-does-not-allude-to-a-buoyant-market\/"},"modified":"2019-10-11T11:58:19","modified_gmt":"2019-10-11T04:58:19","slug":"hike-in-private-home-prices-does-not-allude-to-a-buoyant-market","status":"publish","type":"post","link":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/hike-in-private-home-prices-does-not-allude-to-a-buoyant-market\/","title":{"rendered":"Hike in private home prices does not allude to a buoyant market"},"content":{"rendered":"


\nExperts at Edmund Tie & Company noted that higher land prices, declining average sell-down rates and compressing developer\u2019s margin show that the market isn\u2019t as \u2018buoyant\u2019 like it appears.
\nWhile private residential prices appeared to have diverged from economic fundamentals as it continued to increase for the second consecutive quarter in Q3 2019, this does not allude to a buoyant market, according to Edmund Tie & Company\u2019s latest report.
\nThis comes as various factors, including higher land costs, declining average sell-down rates and compressing developer\u2019s margin, have to be taken into consideration also.
\nThe Urban Redevelopment Authority (URA) flash estimates showed that private non-landed prices for Q3 2019 increased 1.7 percent quarter-on-quarter vis-\u00e0-vis 2.0 percent in the previous quarter.
\nIn negating that the market is buoyant, the property consultancy firm noted that prices of new units tend to be higher compared to resale units, especially after taking into account the higher land prices that developers paid during the en bloc fever.
\n\u201cConsequently, the higher proportion of new sale volume vis-\u00e0-vis resale would result in higher prices, all else being equal,\u201d said Edmund Tie & Company.
\n\u201cAdditionally, our analysis shows that land cost as a percentage of average selling price has been trending upwards, which means that developers\u2019 margins are likely compressing.\u201d
\nThe estimated average sell-down rates of projects have also been on the downtrend.
\nIn fact, the 41 new projects launched since the start of the year registered an average sell-down rate of around 27 percent, which is lower compared to the average sell-down rate achieved for the new projects launched 12 months before the introduction of cooling measures in July 2018 at 47 percent.
\n\u201cFurthermore, the number of new launches and units were substantially lower than the first three quarters of this year. Hence, this does not suggest that the market is \u2018buoyant\u2019,\u201d added the report.
\nWith this, Edmund Tie & Company expects overall unit prices to increase between two percent and four percent this year, barring any economic shocks.
\n\u00a0
\nHome buyers looking for\u00a0Singapore Properties\u00a0may like to visit our\u00a0Listings,\u00a0Project Reviews\u00a0and\u00a0Guides.
\nVictor Kang, Digital Content Specialist at PropertyGuru, edited this story. To contact him about this or other stories, email\u00a0victorkang@propertyguru.com.sg
\n
\nSource : proppertyguru.com.sg\/Property Market
\nRead more…Hike in private home prices does not allude to a buoyant market<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Experts at Edmund Tie & Company noted that higher land prices, declining average sell-down rates...<\/p>\n","protected":false},"author":1,"featured_media":0,"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-111506","post","type-post","status-publish","format-standard","hentry","category-property-news"],"jetpack_featured_media_url":"","jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p75ss1-t0u","jetpack-related-posts":[{"id":123182,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/homebuying-demand-to-remain-buoyant\/","url_meta":{"origin":111506,"position":0},"title":"Homebuying demand to remain buoyant","date":"November 12, 2021","format":false,"excerpt":"\r In Q3 2021, overall transaction volume for private homes increased by 7.5% from the previous quarter\u00a0to 9,083 units; this is a\u00a028.9% year-on-year growth. Homebuying demand in Singapore is expected to remain buoyant, particularly in suburban areas where pricing quanta are lower and relatively more affordable, said Lam Chern Woon,\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"https:\/\/i1.wp.com\/www.siamlandbank.com\/propertynews\/wp-content\/uploads\/2021\/11\/singapore-skyline.jpg?fit=820%2C410&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":112378,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/new-condominium-sales-rose-49-2-qoq-in-q3-2019\/","url_meta":{"origin":111506,"position":1},"title":"New condominium sales rose 49.2% QoQ in Q3 2019","date":"November 15, 2019","format":false,"excerpt":"\r Despite a dip in new project launches, more units put up for sale compared to Q3 2018.\u00a0 New condominium sales grew 49.2% quarter-on-quarter (QoQ) or 16.9% year-on-year (YoY) to 3,198 units, compared to 2,736 units in Q3 2018, reported Singapore Business Review citing a Edmund Tie report. This figure\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":100494,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/residential-investment-sales-plunge-63-in-q3\/","url_meta":{"origin":111506,"position":2},"title":"Residential investment sales plunge 63% in Q3","date":"October 25, 2018","format":false,"excerpt":"\r Investment sales in the residential sector plunged to $2.2 billion due to a lackluster en bloc market. 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