ASEAN KEY DESTINATIONS
Private property prices hit new high in Singapore
Although prices hit record highs, the rise was more muted than before.
Based on the estimated price index of private residential property, prices rose from 189.6 points in the third quarter of 2010 to 194.8 points in the fourth quarter of 2010, or 2.7 percent in Q4 compared to 2.9 per cent the previous quarter.
Non-landed residential properties in the prime city area, or core central region, led the price increase, at 2.3 percent, in the fourth quarter.
The city fringe areas, or rest of central region, posted a 1.7 per cent increase during the quarter. And suburban areas, or outside central region, showed an increase of 1.6 per cent in the same period.
In comparison, for the third quarter of 2010, prices of non-landed private residential properties increased by 1.6 percent in the core central region, 2.3 percent in the rest of central region and 2.2 percent in the outside central region.
For the full year, prices increased 14.3 percent, 17.5 percent and 14.5 percent in the core central region, rest of central region and outside central region respectively.
With private home prices already surging past their 1996 peaks, analysts said there is little room for further increase.
Tay Huey Ying, director of research & consultancy at Colliers International, said: "...A stiffer set of cooling measures were introduced on 30 August and there was an ample supply of launches following the ramped-up government land sales supply...these have helped to put developers' aggressive pricing strategy at bay."
For the whole of 2010, the private residential property price index surged 17.6 per- cent. But a similar increase is unlikely to be repeated in 2011, due to a slower economic growth forecast for this year of about 4-6 percent.
Analysts expect private home prices to rise 8-14 percent in 2011. And as prices stabilise, experts say more government cooling measures are not needed for now.
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