Resale transactions rose for private homes and HDB flats in 2017. TODAY file photo

SINGAPORE ― In the latest sign of a recovery in the private residential market, prices went up 1.1 per cent for the whole of 2017, reversing the 3.1 per cent decline in 2016, latest figures from the Urban Redevelopment Authority (URA) showed on Friday (Jan 26).

Full-year figures for private housing units sold and resale transactions were also up.

According to URA's press release, property developers sold 10,566 units in 2017, 2,594 more compared to 2016. There were 14,043 resale transactions for private homes last year, almost double 2016's figure of 7,901.

Full-year figures for the public housing sector, however, were mixed.

There were 22,077 cases of resale transactions of HDB flats in 2017, 1,264 cases more than the 20,813 cases registered in 2016.

However, resale figures for HDB flats saw a slight dip in the final quarter of last year, falling to 5,738 cases from 5,808 cases in the previous quarter.

The HDB announced in December 2017 that it will be launching 17,000 Build-To-Order flats for sale this year. The first batch to be launched next month will involve some 3,600 flats in Choa Chu Kang, Geylang, Tampines and Woodlands.

Commenting on the latest property data, property analysts noted that the private residential market is in rude health, but the HDB resale market is tepid in comparison.

ZACD Group executive director Nicholas Mak said that various indications — including the fact that developers’ sales outpaced the launch volume, and the “very strong” sales momentum in the private residential resale market — signal the recovery in the private homes market, with a resilient underlying demand.

Dr Lee Nai Jia, Head of Research at Edmund Tie & Company, reiterated that the private residential market “has been the highlight among all the sectors in 2017”.

“There were a number of factors that drove the recovery. Firstly, demand for homes has always been there but many prospective buyers were sitting on the sidelines as they are unsure of when the Additional Buyer's Stamp Duty will be lifted,” he said.

In contrast, the HDB market is more subdued, said Dr Lee. “From the ground, homes with leases of less than 60 years took longer to sell, and at a much lower price,” he added. “Notwithstanding, we anticipate the market to improve, especially in areas where former HUDC developments were sold en bloc. Some of these buyers downsized to a HDB flat and kept the proceeds for retirement, or to support their children in purchasing a private home.”

On the overall property market outlook, Mr Mak added: “The positive sentiments in the residential property market that contributed to the healthy primary market sales and the enbloc sale fever is likely to continue into 2018.” The developments will have a “positive impact” on property prices, he noted. “For example, collective sales are injecting more liquidity into the property market, which would fuel buying demand and price growth. As a result, the overall price index could grow by 4 per cent to 8 per cent this year,” Mr Mak said.

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