2 July 2007

The Urban Redevelopment Authority (URA) released today the flash estimate of the price index of private residential property for 2nd Quarter 2007.

Based on the estimated price index of private residential property, prices rose from 136.5 points in the 1st Quarter 2007 to 147.3 points in the 2nd Quarter 2007. This represents an increase of 7.9%, compared with the 4.8% increase in the previous quarter (see Annex A).

URA also released today the flash estimates of the price changes in the 3 geographical regions for 2nd Quarter 2007. Prices of non-landed private residential properties increased by 7.6% in Core Central Region, 7.9% in Rest of Central Region and 6.5% in Outside Central Region in the quarter (see Annex B).

The flash estimates are compiled based on transaction prices given in caveats lodged during the first ten weeks of the quarter supplemented by information on the number of new units sold. The statistics will be updated 4 weeks later when URA releases the full 2nd Quarter 2007 real estate statistics, when more data on the caveats lodged and the take-up of new projects are captured. Past data have shown that the difference between the quarterly price changes indicated by the flash estimate and the actual price changes could be significant when the change is small. The public is advised to interpret the flash estimates with caution.

The increase in private housing prices in recent quarters is in line with greater economic growth and rising confidence. Private housing prices are now increasing at a faster pace because of good economic prospects going forward and the increasing attractiveness of Singapore as a global city.

The Government will continue to monitor the market very closely. The Government will ensure that there will be sufficient supply of residential space to meet demand. The GLS Programme for the 2nd half of 2007, which was just announced recently, comprises 20 residential sites and 5 other commercial & residential and white sites which have a potential supply of about 8,000 units of private housing and executive condominium (EC) housing. The Government has also re-introduced an Executive Condominium site to give an additional housing option to Singaporeans. If necessary, the Government will make available even more sites for private residential development through the GLS Programme next year.

In addition to new GLS sites for development, there are about 42,200 new units of private housing that will be completed from 2H2007 to 2010. About 22,700 of these units have not been sold by developers yet. Prospective home-buyers should take into consideration the sufficient pipeline supply of private housing, as well as the potential supply from GLS sites, when deciding to make a property purchase.