http://www.straitstimes.com/Money/Story/STIStory_674407.html
May 31, 2011
Resale property prices rise again
NUS index registers 1% gain in April, biggest since Jan's cooling measures
By Esther Teo, Property Reporter
RESALE property prices mirrored the buoyant mood in the new homes market and inched up higher last month, according to an index that tracks prices.
Home prices were up 1 per cent last month - the biggest monthly rise since January's cooling measures - and the increase follows a 0.2 per cent rise in March.
Prices for the central region rose 0.8 per cent, while those in non-central areas added 1.1 per cent.
The increases were recorded by the Singapore Residential Price Index, which the National University of Singapore compiles by monitoring the transactions of non-landed completed projects.
Experts say the index's 1 per cent increase reflects the expansive market mood, with buyers out in such force last month that developers shifted 1,788 new homes - a five-month high.
Cushman & Wakefield's senior manager of Asia-Pacific research, Mr Ong Kah Seng, said the good mood in the new sales market has spilled over to resales, now that buyers on all fronts have had time to digest the cooling measures.
Mr Ong said the 1 per cent price increase follows consecutive months of subdued price gains and does not indicate that the measures have not worked.
Ms Chia Siew Chuin, director of research and advisory at Colliers International, added that buyers could have entered the resale market for fear of missing the boat, with prices generally rising further.
This is especially so for affordably priced units in completed developments with good attributes, she noted.
Experts forecast that market sentiment will be mixed in coming months, although prices are expected to continue inching upwards.
Colliers' Ms Chia said some potential buyers might wait for clearer directions from the Government on housing policy.
'On the other hand, another group may choose to enter the market sooner in view of policy risks and the likely impact on the market,' she added.
'Nonetheless, prices are still expected to continue to strengthen gradually in the coming months.'
Cushman's Mr Ong agreed, saying that non-landed resale prices are expected to hold steady, or rise less than 1 per cent a month.
'(This) reflects the effect of economic strength and positive, genuine owner-occupier home buyer interest,' he noted.
SLP International research head Nicholas Mak said price gains in non-central areas are likely to outpace those in central areas this year, due to the strong demand for affordable homes from locals and permanent residents.
While foreign interest in centrally located homes is returning, it is still not as strong as that in 2007, he noted.
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