Singapore Private Residential Property Price Index
Updated: 25 October 2014
- This chart plots the Singapore Private Residential Property Price Index and its percentage over the previous quarter. The index, compiled quarterly by URA, is the ratio of the current price per square metre compared to that in the 4th Quarter of 1998. It is used to used to monitor the price movement of all private residential properties in Singapore and is based only on caveats lodged with "option exercised" as grounds of claim.
- A caveat is usually lodged by property purchasers to protect their interest soon after an option to purchase a property is exercised or a sale and purchase agreement is signed. Stamp duties, legal and agency fees and other professional fees are excluded from the property prices. The index also exclude en bloc sales as the prices of en bloc sales are usually higher than normal.
- Prices of private residential properties decreased by 0.7% in 2014Q2, registering its fourth consecutive quarter of decline. Year-on-year, the index has declined by 3.9%.
- Transactions has seen a sharp drop and prices have fallen as home buyers are hard hit by the total debt servicing ratio (TDSR) framework introduced by MAS in June 2013. The TDSR framework requires financial institutions, when granting property loans to individuals, to ensure that a borrower's monthly total debt repayments do not exceed 60 per cent of gross monthly income. Investors sentiment have definitely taken a hit and any sudden event which causes a slow down or recession may cause the price decline to accelerate as seen in past cycles.
Figures at a glance...
|Private Residential Property Price Index||207.9||209.4||-0.7%|
Private Residential Property Price Index with Price Bands
- The chart is drawn by drawing line E to join points 1, 2 and 3 and than drawing a parallel line (Line A) to touch point 4. Lines B, C and D are then added. Similar to the stock market, trend lines can act as support and resistance.
- The area between lines A and B represents the period when the property market is over-exuberant. The area between lines D and E represents the period when the property market is overly depressed. This usually happens during economic crisis. The area between lines B and D is when the market is neither over-exuberant nor overly depressed, with Line C being the mean or the ideal..More about this in our article Are Singapore property prices too high? How much should it correct?