How is the growth rate calculated?

The growth rate of property prices in Singapore, such as those for semi-detached houses in districts 14 and 15, or terrace houses in district 15, is typically calculated by comparing the average or median transaction prices over different periods.

Here’s a general outline of how it is done:

1. Data Collection: Transaction data for the specific types of properties (e.g., semi-detached houses, terrace houses) in the specified districts are gathered over a certain period, often quarterly or annually.

2. Average or Median Price Calculation: The average or median transaction price for each period is calculated. This provides a baseline for comparison.

3. Percentage Change Calculation: The percentage change in prices from one period to the next is calculated using the formula:
[
\text{Percentage Change} = \left( \frac{\text{New Price} - \text{Old Price}}{\text{Old Price}} \right) \times 100
]

4. Quarterly or Annual Growth Rate: This percentage change is then reported as the quarterly or annual growth rate.

For example, if the average price of semi-detached houses in district 14 increased from $3 million in the third quarter to $3.07 million in the fourth quarter, the growth rate would be:
[
\text{Percentage Change} = \left( \frac{3.07 \text{ million} - 3 \text{ million}}{3 \text{ million}} \right) \times 100 = 2.33%
]

This method is commonly used by real estate analysts and reported in market trend updates on EdgeProp Singapore.