Home sellers raising their prices by 4% in some areas: PropertyGuru Index

The CBD and its surrounding areas saw the highest increase in asking prices.

Home sellers are already starting to price their units higher following recent signs of a property market recovery in Singapore.

This according to the PropertyGuru Property Index launched on Thursday (23 November), which shows a 3.2 percent price increase in Q3 2017 from the quarter before, reflecting an inflection point after a steady decline from Q3 2015.

PropertyGuru said that sellers are “future-pricing” their homes in anticipation of the market recovery gaining strength in 2018, following the recent en bloc fever and growing confidence amongst developers.

The highest increase of four percent was in the city centre and the surrounding areas. This was followed by the suburbs in northern and western Singapore, which saw asking prices grow by 2.5 and 2.2 percent respectively.

The Index uses data from over 200,000 listings on PropertyGuru’s website, and is benchmarked against price levels as of Q1 2015.

At the same time, the supply of homes put up for sale fell by 4.5 percent in Q3 from the previous quarter in anticipation of higher prices next year.

“There is light at the end of the tunnel now that the market sentiment has finally taken a positive turn after two consecutive years of low seller confidence,” said Hari V. Krishnan, CEO of PropertyGuru Group.

“On the other hand, consumers looking to buy homes should consider closing on their property purchases and lock in prices at the current level.”

 

Romesh Navaratnarajah, Senior Editor at PropertyGuru, wrote this story. To contact him about this or other stories, email romesh@propertyguru.com.sg

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