Trend: house prices up 7.32% y-o-y in 2018
Singapore’s house price rises continue to accelerate, buoyed by strong demand. House prices rose by 7.32% during 2018, a sharp improvement from a y-o-y growth of 0.79% in 2017. Quarter-on-quarter, house prices were almost unchanged during the latest quarter.
Analysis: demand falling; supply continues to increase
In 2018, total home sales, which include new sales, sub-sales and resales, fell by 11.5% y-o-y to 22,139 units, in contrast to a y-o-y growth of 52.7% in the prior year, according to the Urban Redevelopment Authority. In Q4 2018, there were a total of 369,991 housing units available in Singapore, up by 1.6% from the previous quarter, according to URA. Of which 346,395 units are occupied, while the remaining 23,596 units are available, making up a 6.4% vacancy rate (down from 6.8% in the previous quarter and 7.8% a year earlier).
Rents, rental yields: yields are poor in Singapore at 2.54%
Singapore apartment costs are high, at around $13,748 per sq. m.
|Singapore: city centre apartment, buying price, monthly rent (120 sq. m)|
|Buying price||Rate per month||Yield|
|Singapore||$ 1,649,760||$ 3,498||2.54%|
Recent news. Singapore’s economy grew by 1.9% in Q4 2018 from the same period last year, the lowest y-o-y growth since Q4 2015, mainly due to a decline in manufacturing and exports sector, amidst the US-China trade war, according to the Ministry of Trade and Industry (MTI). Overall, the economy expanded by 3.2% in 2018, a moderation from the 3.9% growth in 2017. The economy is expected to expand below 2.5% this year.