By Mr. Propwise

From the URA’s recent flash estimate of the 3Q2012 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 3Q2012 URA PPI flash estimate hit 208 and was up 0.6% on a quarter-on-quarter basis.

At the current levels the price index is 17.2% above the previous 2Q2008 peak, and 14.7% above the previous all time high in 2Q1996.

Figure 1 – URA Property Price Index (based on 3Q2012 flash estimate)

This estimated increase of 0.6% comes after last quarter’s 0.4% quarter-on-quarter increase, implying the pace of price growth is accelerating after the 0.1% fall in 1Q2011. It appears that the strength of property demand and boost to sentiment from the U.S. Federal Reserve’s QE3 have outweighed concern over the slowing economy, the worrying global economic ...