Private home prices rose the highest in almost eight years for the first quarter, to the surprise of analysts who were predicting a moderate price increase.
This prompted some of them to revise their market forecast for non-landed private home prices to rise by up to 10 per cent this year — likely to be boosted by the growing momentum of transactions and by displaced homeowners from en-bloc sales who are looking for newer homes.
On the back of positive economic growth numbers — barring no changes to the existing cooling measures put in place by the authorities — another factor for the projected increase are higher prices for new launches due to higher land costs.
Eugene Lim, key executive officer of real estate agency ERA Realty, said: “The market was expecting a moderate price increase; this jump came quite as a surprise. With almost all the cooling measures still in place, this indicates a very positive market sentiment; and the market is on an uptrend.