URA logo

By Property Soul

If you have a good memory, you may still recall that I have written to The Straits Times Forum in December last year on “Public deserves reliable, consistent data”.

In URA’s reply, they mentioned about working towards making improvements to the property market data and will release the nett prices of individual units sold by developers on their website in the first half of 2015.

On April Fool’s Day, URA finally announced that they have improved the computation methodology of their PPI (Property Price Index) to better reflect price changes in private residential market. This is first reflected in the release of the flash estimate for 1st Quarter 2015. The announcement is also reported in TODAY’s article “Analysts welcome URA’s new method to track private property prices” published on April 2.

Six changes in the new PPI

According to URA’s press release on 1 April 2015, the long-awaited PPI revision (since their last revision in year 2000) covers six major changes:

1. Property Attributes

Besides location, tenure, property type and completion status, PPI will now take into considerations property attributes (e.g. size, age) and micro-location (e.g. proximity to MRT station).

2. Tracking Methodology

To account for differences in housing characteristics, from now on, PPI is calculated based on the Stratified Hedonic Regression Method instead of the previous Stratification Method.

3. Weighting Average

The usual 12-quarter moving average weights now become 5-quarter fixed weights.

4. Base Year

Base period has been changed from 4Q1998 to 1Q2009.

5. Data Source

Apart from caveats lodged and new units sold by developers, data sources now include stamp duty transactions from the Inland Revenue Authority of Singapore.

6. Price Indices

URA will show price trends on a broad rather than micro or localized level. From 1st Quarter 2015, only the following property price indices will be published:

– Residential Properties

– Landed Residential Properties

– Non-Landed Residential Properties

– Non-Landed Residential Properties in Core Central Region, Rest of Central Region and Outside Central Region

If one compares these PPIs with the previous indices, sub-categories like completion status (completed vs uncompleted) and property type (Apartment, Condominium, Detached, Semi-detached and Terrace) have not been mentioned. The picture will be clearer when the full set of 1Q2015 price indices are out in 4 weeks’ time.

Implications behind the changes

What are the implications for the improvement of URA’s PPI?

1. More comprehensive coverage and higher representation

In the past, only data from Singapore Land Authority are accounted, even though lodging caveats with SLA is only based on voluntary submission. Furthermore, survey data on new units sold for uncompleted projects rely on honest contributions by property developers.

Since buyers of all new property sales have to pay buyer stamp duty, it should now be able to capture all private housing transactions. The expanded data collection sources to cover stamp duty payments are definitely much more representative in showing the real picture.

2. More meaningful comparisons among projects

Property prices of various projects, though under the same district, can differ significantly depending on their actual location, age of the property, etc. With the addition of more property attributes like micro-location and size or age of the transacted unit, the public are able to make more meaningful comparisons of the pricing data.

3. Increased difficulty to compare with past data

With the base period 4Q1998 shifted to 1Q2009, and 12-quarter moving average weights changed to 5-quarter fixed weights, the PPI now put more emphasis on price comparisons for the last few years rather than over the past decades.

With the changes in tracking methodology, it is now increasingly difficult to make apple-to-apple comparisons with the old set of PPIs.

What’s next?

URA’s written reply on Dec 23, 2014 has promised the release of the nett prices of individual units sold by developers in the first half of next year.

The public are looking forward to see the actual transacted prices of units bought directly from developers, less all the absorption, subsidies, rebates and incentives offered by the latter.

This post was first published at propertysoul.com

 

Subscribe
Notify of
0 Comments
Inline Feedbacks
View all comments
You May Also Like

选委会寻求宪法对付 泰爱国党面临解散

泰国选举委员会于星期三(2月13日)指出,他们将会要求宪法法庭采取行动,对付推举乌汶叨公主参选首相抑制的爱国党,更要求取消该党的资格。此举无疑是对协助前首相他信返回泰国一事来说,可谓一大重挫。 根据《路透社》报道指出泰国将在3月24举行全国大选,此大选是军人政府于2014年5月发动政变推翻英叻的政权后,5年以来的首次大选,备受瞩目,更被视为是他信的民粹主义候选人和盟友,与忠于军政府候选人之间的对决。 显示反对君主立宪制 泰爱国党上周推举了乌汶叨公主作为代表,竞选首相一职,泰国国王对此举表示“不恰当”,因为皇室高层不应涉及政治,这是有违宪法,颠倒皇室传统的。 虽然公主事后在网上贴文道歉,泰爱国党也表示尊重泰国王的决定,但是泰国选委会表示泰爱国党推举公主的举动显示了对君主立宪制的反对,违反了选举法。 他信家族电视台被下令关闭 另外,泰国国家广播和电信委员会于星期二(2月12日)宣布,暂时关闭一家由他信家族经营的电视台Voice TV,为期15天。 该委员会指出,Voice TV曾播出两项内容涉及混淆视听、制造冲突、破坏社会和谐稳定的节目,存有分裂国家等因素,已经多次违法了相关法令。当局因此才下令吊销该电视台执照15天,并责令停播整改。 Voice TV的东主是他信的两名儿子,该电视台也曾经在2014年和2017年被下令暂时关闭。军方更在该电视台于2014年被下令关闭的两天后发动政变,推翻了时任首相英叻。…

Netizens question the need of destroying greenery to build another tourism development in Singapore

Come 2026, the promising Jurong Lake District will be receiving a new…

Big Brother in cyberspace – anonymously

“He (Mr Brown) should come out from behind his pseudonym to defend…

PMD骑士明芳林公园集会 邀送餐员出席表达心声

个人代步工具(PMD)课题此前闹得沸沸扬扬,然而为了能争取更多权益,使用PMD的用户将在本周六(11月23日)下午5点至10点,于芳林公园举行一场和平集会,特别是诚邀包括送餐员等用户一同出席。 该集会将作为PMD骑士们的发声平台,让所有深受电动滑板车禁令困扰的骑士,能够对近日的个人带工具禁令进行反思,同时也欲让政府了解骑士的生计受到多大的影响。 根据All Singapore Stuff脸书专页所公告,此次集会邀请电动滑板车送餐员何益豪、 Andrew Thang, 前总统候选人陈钦亮以及人民力量党秘书长吴明盛。本次集会将在晚间8点之际,举办长达一小时的对话会议,让出席者发表自己心中所想。 虽然活动宗旨是旨在解决个人代步工具禁令后续延伸的问题,但也诚邀非用户国民出席集会,有意出席者,请携带身份证或护照。 此外,若想成为该活动的志愿者,欲请联系Sarah Alatas(电话号码为8891 9772)…