Private home price increases to moderate rest of the year

The Business Times - July 28
The property cooling measures will tame the upswing in private residential prices in the first half of the year and moderate growth in the rest of the year, but as the pipeline of units eases in the near term, rentals and occupancy rates will find firmer footing, analysts said.

Private residential prices in Q2 rose 3.4 per cent, its fourth straight quarter of increase. Transaction volumes soared to a five-year high, according to second-quarter real estate statistics released on Friday by the Urban Redevelopment Authority (URA).

With that, private home prices rose by a cumulative 7.4 per cent in the first half of 2018.

Landed properties led the way by rising by 4.1 per cent, compared with the 1.9 per cent increase in the previous quarter, while prices of non-landed properties rose by 3.2 per cent, compared with the 4.4 per cent increase in the previous quarter.

Tricia Song, Head of Research:

Private home prices continued to rise in Q2 2018, climbing by 3.4% from Q1 – unchanged from the flash estimates released earlier this month. This was the fourth consecutive quarter of price growth following four years of decline. In particular, home values picked up rapidly in the first half of 2018 - up by a cumulative 7.4% - driven by growing market confidence, a spate of new launches and healthy housing demand.  Click here to read more


Office rentals rise by slower 1.6% in Q2, up 9.4% from year ago: URA

The Business Times - July 27
Office rents in the central region of Singapore rose 1.6 per cent in the second quarter of this year over the previous three months, property data from the Urban Redevelopment Authority (URA) on Friday showed.

This is a smaller gain compared with the 2.6 per cent increase in the previous quarter and also marks the fourth consecutive quarter-on-quarter rise in the index since it last bottomed in the second quarter of last year. The index is up 9.4 per cent from that trough.

On the other hand, prices of office space in the central region increased by 1.9 per cent in second quarter, a faster clip than the 1.3 per cent increase in the previous quarter.

As at the end of the second quarter of 2018, there was a total supply of about 725,000 square metres gross floor area (GFA) of office space in the pipeline, compared with the 791,000 sq m GFA in the previous quarter.

The amount of occupied office space expanded 74,000 sq m net lettable area (NLA) in Q2 2018, compared with the increase of 14,000 sq m NLA in the previous quarter.

Duncan White, Head of Office Services:

Sales prices and rents of office properties continued to recover in Q2 2018, thanks to stronger demand for space from a broad range of sectors, as well as improved investment sales, and more positive business sentiment and upbeat economic outlook. Click here to read more


Central area retail rents, prices resume slide after short recovery

The Business Times - July 28
The Urban Redevelopment Authority's rental and price indices for retail space in Singapore's central region both resumed their downtrend in the second quarter after inching up briefly in the previous quarter.

Islandwide, the vacancy rate of retail space fell to 7.3 per cent as at the end of Q2 2018, from 7.5 per cent at the end of the previous quarter.

"The retail vacancy contraction in tandem with a sustained rental decline are telling of the sector's re-balancing act as retail landlords trade off historically high rents for more stabilised occupancy amidst challenging market conditions," said Colliers International's head of research for Singapore, Tricia Song,

URA's rental index of retail space in the central region slipped 1.1 per cent in the second quarter of 2018 over the previous three months.

 

Tricia Song, Head of Research:
URA’s retail real estate indices for Q2 2018 spelt an overall trend of landlords maximizing store occupancy, with reduced rental rates being conceded. URA’s Retail Rental Index for the Central Region fell by 1.1% QOQ, undoing the sector’s first uptick in three years (+0.1% QOQ) seen during the preceding quarter (Q1 2018). URA’s Retail Price Index for the Central Region also fell in tandem, declining by 1.3% QOQ; more than reversing the previous quarter’s marginal growth of 0.1% QOQ. Click here to read more.