Official data shows that over 100 private units were sold for at least $3,000 psf in Q1 2018.
Property consultancy Savills reckons that private home prices here may rise 15 to 20 percent for the whole of 2018 – up from its previous forecast of between 12 and 15 percent, reported Singapore Business Review.
It raised its estimates after 22 units were sold for a minimum of $10 million each over the past few months, with 102 units taken-up for at least $3,000 psf in Q1, according to data from the Urban Redevelopment Authority.
Moreover, the island-wide private home price index increased 3.9 percent quarter-on-quarter in Q1. This is the highest growth in nearly eight years since Q2 2010, following lower quarterly gains of 0.7 percent and 0.8 percent in the third and fourth quarters of 2017 respectively.
In particular, luxury condos tracked by Savills posted quarterly price gains of 2.9 percent in Q1. Following a cumulative growth of 5.7 percent over four straight quarters since Q2 2017, the average price of these properties reached $2,383 psf in the first three months of the year, and that amount is only 1.9 percent lower than the recent peak five years ago.
One factor driving the healthy growth in private home prices is that baby boomers are helping their children climb the property ladder, said Alan Cheong, senior director of research and consultancy at Savills Singapore.
“Visits to show flats leave a discerning observer with the impression that an increasing number of buyers at new launches are funded in part by their parents’ money,” he noted.