Private home prices growth slows in 1Q2013!

Prices for private homes grew at a slower pace in the first quarter of the year.
Analysts say the slowdown is no surprise, after the government's latest round of cooling measures in January.

For private homes, prices moderated in the first quarter of this year, rising 0.5% on average, according to flash estimates from the Urban Redevelopment Authority (URA) Price index.
The 0.5% rise is smaller than the 1.8% growth recorded in the fourth quarter of 2012.

Analysts said the January cooling measures curtailed an otherwise rapid rise in property prices.

"The market is still very flush with liquidity in a very low interest rate environment. The measures had an impact in the first two months of its introduction, that is, in the month of January and in particular in the month February when developers did not launch any new projects. If you look at the February numbers, just over 700 units of primary new home sales were done," said Donald Han, special adviser at HSR International Realtors.

Market watchers said prices of high-end properties in the city are expected to stay somewhat flat - up to 1% growth - for the rest of the year.

But private homes in the suburbs will climb as much as 4 to 5% by the end of the year, as demand is stable and developers continue to dish out projects.

Source: Channel News Asia