Glossary on Property Market Information


Prices

Rentals

Demand and Supply of Completed Properties

Launches and Sales

Supply in the Pipeline



PRICES

  1. Private Residential Property
     
  • Source and Coverage
     

    The private residential property price indices and median prices are compiled from caveats lodged at Singapore Land Authority (SLA), supplemented with Stamp Duty data from the Inland Revenue Authority of Singapore (IRAS), as well as data provided by developers for new sales. Additional information, such as property type, is obtained from records kept at URA.

    For resale and subsale transactions, we use data from caveats lodged with the SLA, supplemented with Stamp Duty data from IRAS. A caveat is usually lodged by the purchaser to protect his/her interest soon after an option to purchase a property is exercised or a sale and purchase agreement is signed. Transactions which are not caveated will still be included as the contracts are submitted to IRAS for stamp duty payments. The price of properties excludes stamp duties, legal & agency fees and other professional fees. It is the agreed purchase price of the property between the purchaser and the vendor as entered in the contract.

    For new sale transactions, the information used to compile the statistics is collected from housing developers. To ensure that accurate prices are used for compiling the PPI, URA collects nett prices (i.e. prices after deducting the value of the indirect discounts or benefits) of private residential units sold by licensed and de-licensed housing developers and we use these nett prices to compute URA's quarterly property price index.

    As the PPI is meant to provide a broad indication of price trends, transactions that are not representative of the general price movements in the private housing market will be excluded in the improved PPI e.g. Enbloc transactions for the purpose of redevelopment and units with short tenures.
     

  • Methodology
     

    From the 1st Quarter of 2015, the private residential property price indices are computed using a "stratified hedonic regression methodology". Under this method, variations in the attributes of private residential properties transacted such as age and unit size are controlled for by using hedonic regressions and price movements are aggregated using 5-quarter fixed weights to derive the aggregate price change.

    Besides an overall property price index for private residential properties, separate sub-indices for landed and non-landed private residential properties are also compiled. Landed properties comprise detached houses, semi-detached houses, terrace houses and strata landed houses. Non-landed properties comprise apartments, condominiums and executive condominiums of more than 10 years old.

    HDB flats and other public sector buildings are excluded in the compilation of the property price index.

    The non-landed properties are further broken down into 3 market segments – Core Central Region (CCR), Rest of Central Region (RCR) and Outside Central Region (OCR). Core Central Region comprises Postal Districts 9, 10, 11, Downtown Core Planning Area and Sentosa. Rest of Central Region comprises the area within Central Region that is outside postal districts 9, 10, 11, Downtown Core Planning Area and Sentosa. Outside Central Region (OCR) covers the area outside the Central Region. A map of Central Region showing the CCR and the RCR is available at: map
     

  1. Commercial Property
     
  • Source and Coverage
     

    The property price indices and median prices for commercial properties (i.e. office and retail space) are compiled from caveats lodged at Singapore Land Authority (SLA), supplemented with Stamp Duty data from the Inland Revenue Authority of Singapore (IRAS). Additional information, such as property type, is obtained from records kept at URA.

    A caveat is usually lodged by the purchaser to protect his/her interest soon after an option to purchase a property is exercised or a sale and purchase agreement is signed. Transactions which are not caveated will still be included as the contracts are submitted to IRAS for stamp duty payments. The price of properties excludes stamp duties, legal & agency fees and other professional fees. It is the agreed purchase price of the property between the purchaser and the vendor as entered in the contract.

    As the PPI is meant to provide a broad indication of price trends, transactions that are not representative of the general price movements in the commercial market will be excluded in the improved PPI e.g. Enbloc transactions for the purpose of redevelopment and units with short tenures.
     

  • Methodology
     

    To compute the price indices, transactions are grouped by property type, locality, land tenure and completion status. The median price in each group is used to compute a sub-index.

    The price index of a particular property type is the weighted average of all the sub-indices of that property type in the various groups. Prior to the 4th Quarter of 1998, the price indices were computed based on weights assigned to the various property types in each locality. The weights are derived from the value of transactions for each property type in each locality in a fixed year called the base year (= 1990).

    From the 4th Quarter of 1998, the price indices were computed based on the Moving Average method. This means the weights are computed based on the moving average of the value of transactions over the last 12 quarters, instead of being based on the value of transactions in a particular year. The weights in the price indices are therefore updated quarterly so that they are as current as possible.

    Indices for office and retail as well as sub-indices by locality are compiled. As most of the office and retail space are concentrated in the Central Region, sub-indices for the outlying regions are not compiled. Within the Central Region, the locality classification used is Central Area and Fringe Area.
     

RENTAL INDICES AND MEDIAN RENTALS

  1. Private Residential Property
     
  • Source and Coverage
     

    The private residential rental indices and median rentals are compiled from tenancy agreement data from the Inland Revenue Authority of Singapore (IRAS).
     

  • Methodology
     

    From the 1st Quarter of 2015, a "stratified hedonic regression methodology" is used to compute the rental indices. Under this method, variations in the attributes of rental private properties transacted such as age and unit size are controlled for by using hedonic regression and rental movements are aggregated using 5-quarter fixed weights to derive the aggregate rental change.

    Besides an overall rental index for private residential properties, separate sub-indices for landed and non-landed private residential properties are also compiled. Landed properties comprise detached houses, semi-detached houses, terrace houses and strata landed houses. Non-landed properties comprise apartments, condominiums and executive condominiums. HDB flats and other public sector buildings are excluded in the compilation of the rental index.

    The non-landed properties are further broken down into 3 market segments – Core Central Region (CCR), Rest of Central Region (RCR) and Outside Central Region (OCR). Core Central Region comprises Postal Districts 9, 10, 11, Downtown Core Planning Area and Sentosa. Rest of Central Region comprises the area within Central Region that is outside postal districts 9, 10, 11, Downtown Core Planning Area and Sentosa. Outside Central Region (OCR) covers the area outside the Central Region. A map of Central Region showing the CCR and the RCR is available at: map
     

  1. Commercial Property
     
  • Source and Coverage
     

    The rental indices and median rentals are compiled from tenancy agreement data from the Inland Revenue Authority of Singapore (IRAS).
     

  • Methodology
     

    To compute the rental indices, rental transactions are grouped by property type and locality. The median rental in each group is used to compute a sub-index.

    The rental index of a particular property type is the weighted average of all the sub-indices of that property type in the various groups. Prior to the 4th Quarter of 1998, the rental indices were computed based on weights assigned to the various property types in each locality. The weights are derived from the value of rental transactions for each property type in each locality in a fixed year called the base year (= 1990).

    From the 4th Quarter of 1998, the rental indices were computed based on the Moving Average method. This means the weights are computed based on the moving average of the value of rental transactions over the last 12 quarters, instead of being based on the value of transactions in a particular year. The weights in the rental indices are therefore updated quarterly so that they are as current as possible.

    Indices for office and retail as well as sub-indices by locality are compiled. As most of the office and retail space are concentrated in the Central Region, sub-indices for the outlying regions are not compiled. Within the Central Region, the locality classification used is Central Area and Fringe Area.
     

DEMAND AND SUPPLY OF COMPLETED PROPERTIES

  • Coverage
     

    The supply (or stock) of completed private residential units covers detached houses, semi-detached houses, terrace houses, apartments and condominiums. Cluster housing, townhouses, strata detached and semi-detached houses are included under the above different forms of housing, e.g. cluster terrace housing is included under terrace houses. Apartments include HUDC units and dwelling units above shops.

    The statistics before the 1st Quarter of 1995 cover only units completed after 1973. From the 1st Quarter of 1995, the statistics of private residential units were expanded to include all available (occupied and vacant) private residential units in Singapore. From the 2nd Quarter of 1996, HUDC units that have not been privatised, apartments above shops and privatised residential units previously under the Government Housing Scheme for employees were also included in the statistics.

    The supply (or stock) of completed offices and shops covers office and shop space in commercial buildings as well as those in Housing & Development Board estates and shophouses. However, it excludes office and shop space which is ancillary to factory/warehousing developments.

    The supply (or stock) of completed hotel rooms covers only rooms in hotels which are gazetted under the Singapore Tourism (Cess Collection) Act.

    The supply (or stock) of completed factories and warehouses covers factory and warehouse space in industrial buildings. However, it excludes shophouses converted to factory or storage space and transit storage space located within port areas. In the case of factories, the statistics are categorised into multiple-user factories and single-user factories.
     

  • Source
     

    The supply (or stock) of available private residential units and available commercial and industrial space is updated quarterly based on information in Temporary Occupation Permits (TOP)/Certificates of Statutory Completion (CSC), permits for change of use and demolition.

    The vacancy rate of private residential units is based on a survey. Due to the large number of private residential units, the survey on their vacancy rate is conducted on a random sample basis every quarter. The vacancy of the sampled private residential units is inferred from the consumption levels of water and electricity as recorded by the Power Supply. Field visits are carried out for doubtful cases.

    The statistics on vacancy rates of offices, shops, factories and warehouses are obtained mainly through mail questionnaire surveys. All completed and partially completed developments (i.e. when TOP or CSC is issued) are covered in the surveys. Owners or managing agents of the commercial or industrial developments are the respondents of these quarterly surveys. However, the vacancy rates of shophouses are obtained through field visits.

    For gazetted hotel rooms, the number of available rooms and room nights and the occupancy rate are provided by Singapore Tourism Board.

     

LAUNCHES AND SALES

  • Coverage
     

    All new residential projects that are issued with sale licences by the Controller of Housing are covered. Under the Housing Developers (Control and Licensing) Act, a developer licence must be obtained to develop a project with more than 4 units. The units can only be sold by the developer if the developer licence permits the sale of the units before they are completed and after the building plan approval for the development is obtained.

  • Source
     

    The information on the number of units launched and sold by developers is obtained from developers with sale licences.

SUPPLY IN THE PIPELINE

  • Coverage
     

    The supply in the pipeline statistics available in URA-Online cover all developments under construction as well as planned developments with provisional and written permission. A project is deemed to be under construction when a permit to commence building works in respect of that building is issued by the Commissioner of Building Control.

  • Source
     

    The data are obtained from a combination of administrative records from the Development Control Division, URA and the Building and Construction Authority.

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