Private home prices, rents continue to fall in Q2, URA data show

THE Urban Redevelopment Authority's (URA) private-home price index slipped 0.9 per cent in the second quarter of this year over the previous quarter. This was the seventh consecutive quarter of price decline. In the first quarter of this year, the index fell one per cent.

Price falls were seen in all segments of the private residential property market in Q2, URA noted. Prices of non-landed properties eased 0.6 per cent on a quarter-on-quarter basis in the Core Central Region (CCR) in Q2, a bigger drop than Q1's 0.4 per cent decline.

In the city fringe or Rest of Central Region (RCR), the price fall was also 0.6 per cent, a smaller drop than the 1.7 per cent decline in Q1. In the suburbs, or Outside Central Region (OCR), prices eased 1.1per cent, the same as in the previous quarter.

Prices of landed properties shed 1.0 per cent, after easing 0.9 per cent in Q1.

In its news release issued on Friday morning, URA said also said that rentals of private residential properties fell 1.1 per cent in Q2, compared to the 1.7 per cent decline in Q1.

The rental decline was observed across all segments of the private residential property market. Rentals of non-landed properties fell 1.3 per cent in CCR, 1.1 per cent in RCR and 1.0 per cent in OCR - compared with decreases of 1.9 per cent, 1.6 per cent and 1.8 per cent respectively in the previous quarter.

Rentals of landed properties declined by 1.0 per cent in Q2 after easing 1.2 per cent in Q1.

Developers sold 2,116 private homes, excluding executive condominiums (ECs), in Q2, higher than Q1's number of 1,311 units.

There were also 1,827 resale transactions in Q2, again more than the 1,250 units in Q1.

The number of subsales in Q2, at 161, was also ahead of the Q1 figure of 94 units.

URA also said that the vacancy rate of completed private residential units (excluding ECs) increased to 7.9 per cent at the end of Q2 from 7.2 per cent at the end of Q1.