By Mr. Propwise
From the URA’s recent flash estimate of the 2Q2012 Private Residential Property Price Index (PPI), property prices have managed to defy gravity and even managed to register a slight increase in the quarter. The 2Q2012 URA PPI hit 206.8 and was up 0.4% on a quarter-on-quarter basis.
At the current levels the price index is 16.5% above the previous 2Q2008 peak, and 14.0% above the previous all time high in 2Q1996.
Figure 1 – URA Property Price Index
This estimated increase of 0.4% comes after the rate of growth of the PPI had slowed for nine consecutive quarters (i.e. property price growth had been decelerating continuously), followed by a slight decline in 1Q2011. It appears that the strength of property demand has outweighed concern over the slowing economy, the worrying global economic situation especially with the troubles in Europe and weak ...
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