Saturday, December 8, 2012

Resale non-landed private residential property prices increased 5.4% in a single quarter

It seems like sky is the limit for the credit fuelled Singapore property bubble. According to SRX Residential Property Flash Report, resale non-landed private residential property prices increased 5.4% in a single quarter in the first two months of Q4 2012, compared to the previous quarter. The prices have climbed 4.5% in Outside Central Region (OCR).
All regions have outperformed the previous quarter. Outside Central Region (OCR) led the gain with a 4.5% increase over Q3, followed by Rest of Central Region (RCR), which saw a 3.3% increase. 
The Core Central Region (CCR) gained 2.8%. This quarter, CCR transactions, which have higher PSF than that of other regions, represent a bigger proportion of total transactions than seen in previous quarters. 
Transaction volume continues to increase. Comparing the first 2 months of Q3 and Q4, transaction volume rose by 6% in Q4 to hit 2,483 resale transactions in the Oct-Nov period.
Source :  Prices of resale homes rocket to historic high $1,222 psf
Rental market was a completely opposite story. Plagued with a high number of new properties entering into market and less number of tenants to take them up, Average unit monthly rent dropped by 1.0%, from $3.88 psf in Q3 to $3.84 in the first two months of Q4.

Gross rental yield fell to a 6-year historic low of 3.77% in Q2 2012 due to fast price increase and drop in rents.

On the public resale flat side, HDB median resale price hit a new record of $455,000. Overall cash-over-valuation (COV) went up to $34,000 in the first two months into 4Q 2012:

This is $2,000 shy of the 5-year historical high of $36,000 COV attained in 2011Q3 since tracking began in 2007. On a month-to-month basis, overall COV increased from $33,000 in Oct to $35,000 in Nov. 
The highest COV with at least 10 contracts signed among all property types in all towns is for HDB 4-room flats in Queenstown. Median COV in the first 2 months of Q4 is $76,250. The higher COV helped to push overall HDB median resale price to a new historical high of $455,000. This represents a 1.1% increase from 3Q's $450,000. 
Overall HDB median rents remained unchanged at $2,400.
Source : HDB median resale price hits $455,000 

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