Flash estimates yesterday by the Urban Redevelopment Authority (URA) show the price index of private residential property for the first three months rose to 174.2 points - 5.1 per cent higher than in the fourth quarter last year.
But the pace of growth was slower than the 7.4 per cent surge in October to December. And the index is still 2 per cent below the peak levels of mid-2008, and 4 per cent off the historical height of the 1996 property boom.
Industry observers said that had it not been for the recent anti-speculative measures introduced in February, the price hike could have been higher.
"If the demand for private homes continue for the rest of this year unabated, the record average private home prices set during the property boom in 1996 could be exceeded before the end of this year," said Mr Nicholas Mak, real estate lecturer at Ngee Ann Polytechnic. He expects prices to increase by between 12 and 22 per cent for the whole of this year.
Mr Donald Han thinks that record peak could be hit in three to six months. "We are expecting 1Q2010 (sales) volume to be between 3,800 and 4,100 units", and home prices would grow moderately by 3 to 5 per cent on-quarter, said the Cushman and Wakefield managing director for Singapore.
The URA data showed prices of non-landed private homes in the prime Core Central Region rose by 4.5 per cent; the Rest of Central Region 7.2 per cent; and Outside Central Region 3.9 per cent.
The estimate figures will be updated by URA in four weeks' time. Millet Enriquez
- TODAY, 2 April 2010
