We’re on sale: High-end CCR property prices continue steep drop in Q2

Costs will slide even more in 2H14.

Moe property buyers are fleeing from expensive properties in the Core Central Region. Data released by the URA today revealed a steep price decline in the CCR for 2Q14, with more decreases expected in the latter half of the year.

According to Knight Frank, the decline is caused by increasingly price-sensitive homebuyers and the government’s property cooling measures.

“With the property cooling measures and the TDSR framework reining in buying momentum, lacklustre buying sentiment is likely to persist in the near term. With homebuyers becoming increasingly price-sensitive and discerning in their purchases, developers would need to review their pricing and marketing strategies in order to move units. The downward fall in prices could continue into the second half of 2014,” stated the report.

Here’s more from Knight Frank:

Property prices in all non-landed private residential market segments fell, with the largest decline seen in the high-end market in the Core Central Region (CCR). Prices fell by 1.5 per cent q-o-q, marking its fifth consecutive quarter of decline. On a y-o-y basis, prices have fallen 4.8 per cent.

Based on caveats lodged data as at 1stJuly 2014, the steeper price decline seen in the CCR for 2Q 2014 could be due to falling new sale and resale prices of high-end properties in Districts 1 and 2, which saw more than 10 per cent q-o-q decline in prices.

Private home prices in the CCR are expected to fall by another 1 to 2 per cent per quarter in the next half of the year, with an estimated 4 to 8 per cent y-o-y decline in 4Q 2014.

New sale prices in Districts 10, however, provided some support, with prices having risen by approximately 7 per cent. New sale prices in District 9 declined marginally by 2.3 per cent, while resale prices increased 4.1 per cent.