URA releases 4th Quarter 2017 property statistics

The Urban Redevelopment Authority (URA) released today the real estate statistics for 4th Quarter 2017¹.

PRIVATE RESIDENTIAL PROPERTIES

Private residential market at a glance:

Prices and Rentals

Prices of private residential properties increased by 0.8% in 4th Quarter 2017, similar to the 0.7% increase in the previous quarter. For the whole of 2017, prices increased by 1.1%, compared with the 3.1% decline in 2016.

Property Price Index of private residential properties

Prices of landed properties rose by 0.5% in 4th Quarter 2017, compared with the 1.2% increase in the previous quarter. Prices of non-landed properties rose by 0.8%, compared with the 0.6% increase in the previous quarter.  For the whole of 2017, prices of landed properties decreased by 0.5% while prices of non-landed properties increased by 1.3%.

Prices of non-landed properties in Core Central Region (CCR) increased by 1.4% in 4th Quarter 2017, compared with the 0.1% increase in the previous quarter. Prices of non-landed properties in Rest of Central Region (RCR) increased by 0.4%, compared with the 0.5% increase in the previous quarter.  Prices of non-landed properties in Outside Central Region (OCR) increased by 0.8%, same as that in the previous quarter (see Annexes A-1a, A-1b, A-2 & A-6²).  For the whole of 2017, prices of non-landed properties in CCR, RCR and OCR increased by 0.6%, 1.8% and 1.4% respectively.

Rentals of private residential properties declined by 0.9% in 4th Quarter 2017, after remaining unchanged in the previous quarter. For the whole of 2017, rentals of private residential properties declined by 1.9%, compared with the decline of 4.0% in 2016.

Rental Index of private residential properties

Developers did not launch any EC projects for sale in 4th Quarter 2017. Nevertheless, they sold 446 EC units from previous launches over the period (see Annex F). In comparison, developers launched 531 EC units and sold 1,539 EC units in the previous quarter.  For the whole of 2017, developers launched 1,555 EC units and sold 4,011 EC units.

Resales and Sub-sales

There were 4,226 resale transactions in 4th Quarter 2017, compared with the 3,949 units transacted in the previous quarter. Resale transactions accounted for 68.1% of all sale transactions in 4th Quarter 2017, compared with 59.0% in the previous quarter (see Annex D). For the whole of 2017, there were 14,043 resale transactions, compared with 7,901 resale transactions in 2016.

There were 120 sub-sale transactions in 4th Quarter 2017, compared with the 81 units transacted in the previous quarter. Sub-sales accounted for 1.9% of all sale transactions in 4th Quarter 2017, compared with 1.2% in the previous quarter (see Annex D). For the whole of 2017, there were 401 sub-sale transactions, compared with 505 sub-sale transactions in 2016.

Number of resale and sub-sale transactions for private residential units (excluding ECs)

Supply in the Pipeline

As at the end of 4th Quarter 2017, there was a total supply of 36,029 uncompleted private residential units (excluding ECs) in the pipeline with planning approvals³, compared with the 35,022 units in the previous quarter (see Annexes E-1 & E-2⁴). Of this number, 18,891 units remained unsold as at the end of 4th Quarter 2017, up from 16,031 units in the previous quarter (see Annexes B-1 & B-2).

After adding the supply of 6,144 EC units in the pipeline, there were 42,173 units in the pipeline with planning approvals (see Annex E-3). Of the EC units in the pipeline, 864 units remained unsold. In total, 19,755 units with planning approvals (including ECs) remained unsold, up from 17,178 units in the previous quarter.

Total number of unsold private residential units in the pipeline

Based on the expected completion dates reported by developers, 14,764 units (including ECs) will be completed in 2018.  Another 8,760 units (including ECs) will be completed in 2019.

Pipeline supply of private residential units and ECs by expected year of completion

Note: 16,449 private residential units and 4,119 executive condominiums were completed (i.e. obtained TOP) in 2017.

The redevelopment of private residential developments sold en-bloc in the past 2 years will add a significant number of new housing units to the supply pipeline.
Specifically, in addition to the 19,755 unsold units with planning approval, there is a potential supply of 19,900 units (including ECs) from Government Land Sales (GLS) sites and awarded en-bloc sale sites that have not been granted planning approvals yet. They comprise (a) about 7,800 units from awarded GLS sites, Reserve List sites that have been triggered for sale but not awarded yet, and Confirmed List sites that have not been awarded yet, and (b) about 12,100 units from awarded en-bloc sale sites⁵. A large part of this new supply of 19,900 units could be made available for sale later this year or next year, and will be completed from 2021 onwards.

OFFICE SPACE

Office market at a glance:

Prices and Rentals

Prices of office space increased by 2.7% in 4th Quarter 2017, compared with the 0.4% increase in the previous quarter (see Annexes A-1a & A-1b). Rentals of office space rose by 2.6% in 4th Quarter 2017, compared with the increase of 2.4% in the previous quarter (see Annexes A-3a, A-3b & A-5).  For the whole of 2017, prices of office space decreased by 2.4%, compared with the decline of 2.8% in 2016; while rentals of office space increased by 0.4%, compared with the decline of 8.2% in 2016.

Property Price Index of office space in Central region

Rental Index of office space in Central region

Supply in the Pipeline

As at the end of 4th Quarter 2017, there was a total supply of about 597,000 sq m GFA of office space in the pipeline, compared with the 607,000 sq m GFA of office space in the pipeline in the previous quarter (see Annexes E-1 & E-2).

Pipeline supply of office space

Note:350,623 sqm of office space was completed (i.e. granted TOP) in 2017

Stock and Vacancy

The amount of occupied office space increased by 55,000 sq m (nett) in 4th Quarter 2017, compared with the increase of 10,000 sq m (nett) in the previous quarter. The stock of office space decreased by 4,000 sq m (nett) in 4th Quarter 2017, compared with the increase of 91,000 sq m (nett) in the previous quarter. As a result, the island-wide vacancy rate of office space at the end of 4th Quarter 2017 dropped to 12.6%, from 13.3% at the end of the previous quarter (see Annexes A-5 & E-1).

Stock and vacancy of office space

RETAIL SPACE

Retail market at a glance:

Prices and Rentals

Prices of retail space decreased by 1.0% in 4th Quarter 2017, compared with the decrease of 0.9% in the previous quarter (see Annexes A-1a & A-1b). Rentals of retail space decreased by 0.5% in 4th Quarter 2017, compared with the decrease of 0.2% in the previous quarter (see Annexes A-3a, A-3b & A-5).  For the whole of 2017, prices of retail space decreased by 8.8%, compared with the decline of 5.4% in 2016, while rentals of retail space decreased by 4.7%, compared with the decline of 8.3% in 2016.

Property Price Index of retail space in Central region

Rental Index of retail space in Central region

Supply in the Pipeline

As at the end of 4th Quarter 2017, there was a total supply of 509,000 sq m GFA of retail space from projects in the pipeline, compared with the 556,000 sq m GFA of retail space in the pipeline in the previous quarter (see Annexes E-1 & E-2).

Pipeline supply of retail space

Note: 192,196 sqm of retail space was completed (i.e. granted TOP) in 2017.

Stock and Vacancy

The amount of occupied retail space increased by 64,000 sq m (nett) in 4th Quarter 2017, compared with the increase of 15,000 sq m (nett) in the previous quarter. The stock of retail space increased by 18,000 sq m (nett) in 4th Quarter 2017, compared with the increase of 22,000 sq m (nett) in the previous quarter. As a result, the island-wide vacancy rate of retail space dropped to 7.4% at the end of 4th Quarter 2017, from 8.2% at the end of the previous quarter (see Annexes A-5 & E-1).

Stock and vacancy of retail space

URA’S REAL ESTATE INFORMATION SERVICE

More detailed information on the price and rental indices, supply in the pipeline, stock and vacancy rates of the various property sectors can be found in the Real Estate Information System (REALIS), an online database of URA.

More information on REALIS can be found at https://spring.ura.gov.sg/lad/ore/login/index.cfm.

Summary of Key Information for 4th Quarter 2017

Source : Urban Redevelopment Agency (URA)