According to flash estimates released by the , Urban Redevelopment Authority ( URA ) on Tuesday ( Oct 1 ), private housing prices dropped in the third quarter of the year as sales momentum slowed.
The third quarter of this year saw a 1 % decrease in the private residential property price index, a change from the previous quarter’s 0.9 percent increase.
It is the first moment rates have dipped since , the next quarter of 2023.
In the fourth quarter of this year, sales transaction amount even decreased by about 11 percent on a quarter-on-quarter basis, according to URA.
Overall, private housing prices increased by 1 % for the first three quarters of 2024, a modicum increase from the 3.9 % increase over the same time in 2023.
Sales deal level decreased by 8.1 percent over the first three quarters of 2024 from the same period last month.
PRIVATE Qualities
In contrast to the 1.9 % increase in the previous quarter, prices for landed properties increased by 3.8 % in the third quarter.
For non-landed personal qualities, rates decreased by 0.3 per cent this quarter, a turnaround from the 0.6 per cent boost in the previous quarter.
Prices for non-landed components in the Core Central Region (CCR ) saw the largest fall of 1.5 per cent this fourth, extending the 0.3 per cent decrease in the previous quarter.
Prices in the Outside Central Region ( OCR ) fell by 0.1 per cent, compared to the 0.2 per cent increase in the previous quarter.
Non-landed private property prices in the Rest of Central Region (RCR ) increased by 0.2 %, a decrease from the 1.6 % increase in the prior quarter.
There are a number of reasons why prices have dropped. Home experts ‘ predictions for the Hungry Ghost Festival and September college holidays include lower demand and fewer launch.
Some possible buyers  may have exercised greater caution in purchasing decisions because they were “more restrained in their value due to the higher cost of living and interest rates,” according to Ms. Christine Sun, chief scientist and planner at OrangeTee Group.
Others could not have purchased because they were anticipating the Federal Reserve’s possible September interest rate reduction.
The US Federal Reserve warned that despite recent interest rate reductions, home loan rates are expected to remain elevated in contrast to the lows seen over the past ten years.
The authority stated that while economic conditions are stable, the outlook on the economy is uncertain and that market sentiments are still vulnerable to political developments and global interest rate changes.
It urged people to” continue to exercise patience” when purchasing real estate and applying for mortgage loans.
The flash estimations were compiled based on purchase prices determined from stamp duty payments and information on units sold by designers up until mid-September.
On October 25, URA will launch its entire collection of real property records for the second quarter of 2024.