The latest figures for private residential property prices have been released. These are for the fourth quarter in 2016, and continue the pattern noticed in the previous quarters of the same year. In fact, property prices have been declining for longer, but the decline has softened in 2016 compared to 2015.
13th Consecutive Quarter Decline
Q4 2016 followed the pattern for the previous 12 quarters. It dropped by 0.6 points, which equates to a 0.4% drop in house prices. This is a smaller drop than Q3, which saw a 1.5% decrease. Overall, the property prices dropped by 3.0% in 2016, compared to 2015’s 3.7%.
Core Central Region Performing Stronger
As many experts expected, the Core Central Region (CCR) performed better than the rest of the region. In Q4 the prices remained the same as Q3, which saw a 1.9% decline from Q2. Outside the CCR, prices decreased by 2%, which followed the 1% decrease from the third quarter.
Outside of the central region, prices also slipped. The slip was not as dramatic, seeing a 0.3% decrease compared to Q3’s 1% fall.
House Prices Are Supported
While the prices of properties have slipped, it isn’t a major concern for CBRE’s head of research, Desmond Sim. He shared that the land costs are higher and help to support the falling property prices. Developers are also seeing good balance sheets, preventing a wide panic over falling prices.
There is some concern for 2017, though. Interest rates look to rise, which puts more pressure on property prices. There may be a more of a fall in market prices because of these rates. The concerns are premature at the moment.
There are still plans to produce 17,000 new flats in 2017, which will be available for sale. The first will start in February.