How Much Have Condo Prices Changed In The Last 10 Years

How Much Have Condominium Prices Changed In The Last 10 Years?

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27 Jan 2019

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TL;DR: A Quick Guide To Condominium Prices Over The Last 10 Years

For new sales, condo projects in the East saw the highest price increase of roughly 77%
Resale properties in the North and West saw the highest price appreciation, at about 72% over the last decade
Despite new property cooling measures, home prices are expected to hold steady as there is no oversupply in the market
Continued buying activity suggests that there is both liquidity and demand for residential units

If it feels like everything costs a little more with each passing year, well it isn’t just your imagination. Inflation does take its toll over the years, and as 2018 passes into the annals of history, let’s take a look at how much private home prices have risen over the past 10 years.

Based on URA data, we looked at the average transacted prices of non-landed private residential properties in the new sales and resale segments across Singapore from 2008 to 2018 to make a comparison.

For simplicity’s sake, we assume that all units are between 850 sq ft to 950 sq ft (the average size of a two-bedroom condo).

Here’s what we found.

New Sales: Projects In The East Saw The Highest Price Increase

Between 2008 and 2018, we found that the average selling price for new projects in the East region saw the highest price increase.

In 2018, prices of a two-bedroom condominium transacted at an average of $1.26 million, compared to an average of $677,768 a decade ago. This translates to a price increase of 86% within a span of 10 years.

The price increase is likely due to the revival of suburban localities, the establishment of new growth corridors, and new MRT lines in the region. Residents in the East will enjoy more ease of accessibility to the city and to the northern parts of the island with the upcoming Thomson-East Coast Line (TEL). The TEL is slated to begin operation in end 2019.

Image Credit: Land Transport Authority Singapore

This is followed by new projects in the North region, which saw a price increase of roughly 77% over the last decade.

Planning Region	2008	2018	% difference in the last 10 years
Central Region	$1,054,885	$1,635,912	55%
East Region	$677,768	$1,259,217	86%
North East Region	$760,831	$1,130,413	49%
North Region	$518,500	$919,866	77%
West Region	$849,759	$1,206,116	42%

* Assuming that all units are between 850 sq ft and 950 sq ft

Resale Properties: Projects In The North And The West Saw The Highest Price Appreciation

Between 2008 and 2018, resale prices for properties in the North and the West regions saw the highest increase, at about 72% over the last decade for both regions.

In 2008, a resale two-bedroom condominium in the North transacted an average of $473,173. In 2018, a similar-sized unit transacted at an average of $812,313.

Meanwhile, a resale two-bedder condo in the West transacted at an average of $564,480 in 2008, and $969,176 in 2018.

Resale prices of private properties in the Central and North East regions, on the other hand, saw respective price increases of 68% and 66% over the last decade.

Planning Region	2008	2018	% difference in the last . 10 years
Central Region	$829,480	$1,390,005	68%
East Region	$629,635	$955,553	52%
North East Region	$611,018	$1,013,044	66%
North Region	$473,173	$812,313	72%
West Region	$564,480	$969,176	72%

* Assuming that all units are between 850 sq ft and 950 sq ft

How Will The New Property Cooling Measures Impact Housing Prices?

On July 18, the government stepped in to cool the red hot residential property market by introducing a fresh round of cooling measures. This included higher Additional Buyer’s Stamp Duty (ABSD) rates.

With the new property curbs, Singaporeans buying their second property will now pay 12% ABSD from the previous 7%. Singapore PRs will pay a 15% ABSD from the previous 10% when they purchase a second property, while foreigners will pay a 20% ABSD from the previous 15%.

The cooling measures also introduced tighter loan-to-value (LTV) limits, a move that affected first-time homebuyers the most, primarily because the LTV limit has been reduced to 75% from 80%.

This is reflected in the significant decline in new home sales on August 18, which fell 64.3% from the previous month, and 50.6% compared to a year ago.

However, developer home sales in September saw a 51% increase from the previous month. This was primarily due to the strong response at the launches of JadeScape and Mayfair Gardens.

Image Credit: Jadescape Condo by Qingjian Realty

Demand for high-end properties in the Core Central Region (CCR) has also demonstrated resilience despite the property cooling measures.

In the long run, home prices are expected to hold steady despite the cooling measures as there is currently no oversupply in the market. Continued buying activity also suggest that there is both liquidity and pent-up demand for residential units in the market.

Seedly Contributor: EdgeProp

EdgeProp is a Singapore-based property portal that aims to help users make better property decisions by providing all the latest property news and views, listings, data, and analyses.

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