Singapore condo resale prices dip 0.3% in Feb; volume down 11%

[reporter2]

http://www.businesstimes.com.sg/real-estate/singapore-condo-resale-prices-dip-03-in-feb-volume-down-11

Singapore condo resale prices dip 0.3% in Feb; volume down 11%

By Lee Meixian

[email protected]

@LeeMeixianBT

Mar 8, 2016


RESALE prices of non-landed private homes in Singapore dipped 0.3 per cent in February 2016, after increasing 0.8 per cent in January.

Core Central Region recorded no change, while Rest of Central Region (city fringe) recorded a price increase of 0.1 per cent. Outside Central Region (suburbs) posted a 0.8 per cent decrease in prices.

This was according to data released by SRX Property on Tuesday.

Year on year, prices last month fell 1.6 per cent from February 2015.

February 2016 prices were down by 7.4 per cent from the recent peak in January 2014.

Resale volume fell by 10.8 per cent last month. About 356 units were resold compared to 399 units in January. Year on year, resale volume last month was 3.8 per cent higher compared to 343 units in February 2015.

Compared to its peak of 2,050 units resold in April 2010, resale volume was down by 82.6 per cent in February 2016.

[reporter2]

http://www.businesstimes.com.sg/real-estate/condo-resale-prices-slip-03-in-feb-srx

Condo resale prices slip 0.3% in Feb: SRX

By Lee Meixian

[email protected]

@LeeMeixianBT

Mar 9, 2016


RESALE prices of private condominiums and apartments in Singapore dipped 0.3 per cent in February 2016, after increasing 0.8 per cent in January.

It was dragged down by a 0.8 per cent price fall in the suburbs, and led property consultants to call January a "blip".

ERA Realty key executive officer Eugene Li blamed monthly fluctuations, aggravated by reduced market activity.

R'ST Research director Ong Kah Seng said January's price increase was but a "blip" following a quiet December.

"The general trend for completed property prices is still a marginal downward trend due to the enduring impact of the TDSR (total debt servicing ratio) which constrains (the obtaining of) large property loans.

"Also, most buyers are not putting their emphasis on getting a resale unit, prioritising instead on their dream property purchase of an attractively priced or discounted developer sale due to the TDSR limits."

According to data released by SRX Property on Tuesday, the Core Central Region (the city centre) recorded no change in transaction prices, while the Rest of Central Region (the city fringe) recorded a price increase of 0.1 per cent.

Year on year, prices last month fell 1.6 per cent from February 2015.

February 2016 prices were down by 7.4 per cent from the recent peak in January 2014.

Transactions wise, resale volume fell by 10.8 per cent last month, despite there being no new project launch by developers in the month to compete with the resale market.

About 356 units were resold compared to 399 units in January. Year on year, resale volume last month was 3.8 per cent higher compared to 343 units in February 2015.

Compared to its peak of 2,050 units resold in April 2010, resale volume was down by 82.6 per cent in February 2016.

ERA's Mr Lim expects to see a more active resale market this year: "As more buyers purchase for their own occupation, resale units provide a more appealing proposition due to the larger home sizes and higher bargaining power of buyers.

"Transaction volume should pick up during the March to July period before the onset of the hungry ghost month around August."

He further noted that despite the decrease in prices, most sellers are not making a loss in the current market, which highlights the resilience of the property market for the longer term.

R'ST Research's Mr Ong added: "Property and economic markets have been very dispiriting recently, compounded by the recent stock market rout. There are now fewer buyers keen to shop around for completed private properties, even if this completed home segment increasingly presents opportunities and value buys as owners scale down in their asking prices."

He expects completed condo and apartment prices to continually fall "soft landing style", with a total decline of about 3 per cent for the whole of 2016.

Resale activity should pick up as new buzz in developer sales re-inject some life into the comatose property market, he said.