Private home prices up 3.5% in Q2 as market rebounds on record launch prices, increased volume

PRICES of private residential properties rose 3.5 per cent in the second quarter from the previous quarter, by more than the 3.2 per cent flash estimate released earlier this month, as well as the 0.7 per cent increase chalked up in Q1.

Analysts said that the gain in the price index for private homes — which came despite headwinds such as inflation, rising interest rates and the prospect of a potential recession — was a result of new launches in the city-fringe, the return of foreign buyers as well as firm demand.

Data from the Urban Redevelopment Authority (URA) released on Friday (22 Jul) showed that prices of landed properties went up 2.9 per cent in Q2 after a 4.2 per cent increase in the prior quarter; prices of non-landed homes climbed 3.6 per cent, reversing from a 0.3 per cent decline previously.