Price growth of private homes slows in Q1 after cooling measures, even as levels hit new high

PRIVATE home prices grew at a slower pace in the first quarter of the year after December's cooling measures, even as they rose for an eighth consecutive quarter to hit a historical high.

According to data from the Urban Redevelopment Authority (URA), prices of private homes were up by 0.7 per cent quarter on quarter in Q1 2022, moderating significantly from the 5 per cent notched in Q4 2021. At 0.7 per cent, this was marginally higher than URA's flash estimate of 0.4 per cent earlier this month.

"Private home prices are 13.1 per cent higher than the previous peak in Q3 2013," noted Huttons' senior director (research) Lee Sze Teck. Nonetheless, Q1 registered the slowest quarterly increase since the height of the pandemic in Q2 2020.