July resale prices for private homes dip 0.5%

July resale prices for private homes dip 0.5%

Aug 9, 2017

Non-landed property figures fall after 2 months of increase but still 2.2% higher than January's

Annabeth Leow


Resale prices in the private housing segment took a dip in July after two months of increase, although values were still higher than at the start of the year.

Prices for non-landed homes were down by 0.5 per cent from June but they were still 2.2 per cent higher than in January, according to SRX Property flash estimates released yesterday.

The results were mixed across the island, with resale prices outside the central region falling by 1.9 per cent from June to last month.

But prices in the core area of the central region rose 0.6 per cent and inched up 0.4 per cent elsewhere in that zone.

The overall 0.5 per cent decline last month follows a 0.7 per cent gain made from May to June. SRX Property revised this figure down from an initial 0.9 per cent rise.

Resale prices in July were still 2 per cent higher than in the same month last year, thanks to a 4.8 per cent increase in the core central region and a 4.4 per cent lift in the rest of the central region.

But the figures remained lower by 5 per cent from their peak in January 2014.

SRX said last month's median prices were flat against its computer-generated estimated market values.

This was down from June, when buyers overpaid by a median of $1,000.

Dr Lee Nai Jia, head of research at Edmund Tie & Company, said the increase in central home prices looks set to continue, "as buyers' sentiments are reinforced by the bullish land bids and the higher take-up rates of recent launches".

He pointed to the strong performance of luxury apartments such as Martin Modern, which sold close to 90 units in its launch weekend.

Last Saturday, Chinese developer Qingjian Realty sold more than half of the 516 homes at its new Le Quest mixed development in Bukit Batok, with an average selling price of roughly $1,280 per sq ft.

Sales of new homes have soared this year, with more than 6,500 units snapped up - excluding executive condominiums - in the first six months of the year, a 72 per cent jump from the same period last year.

On the resale front, though, the SRX flash figures showed a 9.7 per cent monthly decrease in the number of units moved.

There were 952 sales of non-landed private homes last month, down from 1,054 in June.

"Notwithstanding, the fall is likely to be a blip," Dr Lee said.

July resales were still 20.1 per cent higher than for the same month last year.

Private condo resale prices fall 0.5% in July

That prices and deals rose y-o-y, despite falling m-o-m, is evidence that the market is still on the mend: consultant

August 9, 2017

Lee Meixian


RESALE prices of private condominiums and apartments fell 0.5 per cent in July, after rising 0.7 per cent in June, SRX Property data showed on Tuesday.

By region, both the Core Central Region and Rest of Central Region (referring to the city fringe) recorded a price increase of 0.6 per cent and 0.4 per cent respectively, while the Outside Central Region (referring to the suburbs) price index fell by 1.9 per cent.

Usually, a resurgence in primary market activity tends to give a boost to transaction prices in the resale market. However, ZACD Group's head of research and consultancy Nicholas Mak said that the decline in prices in July could be a correction after resale prices climbed 2.7 per cent from January to June in an almost continual uptrend, according to SRX's price index.

Explaining the difference in the direction of price movements among the different regions, Lee Nai Jia, who heads research at Edmund Tie & Co, noted that the positive response at the launch of Martin Modern in Robertson Quay lifted sentiment for the rest of the prime city-centre and city-fringe markets. The project sold nearly 90 units during its opening weekend.

"We anticipate the CCR market to improve further. The OCR market segment is more fragmented. Properties in choice districts continued to attract much interest as their prices were more resilient compared to the other districts.

"Separately, some home owners in the OCR resale market were under pressure to sell at lower prices to avoid paying the additional buyer's stamp duty (when they buy a new property)."

Year on year, prices in July were up by 2 per cent from a year ago; year to date, prices have increased 2.2 per cent.

This dovetails with consultants' observation that private home prices seem to be at an inflexion point and may start increasing next year, when projects on sites bought at high land prices come to the market.

Resale volume fell by 9.7 per cent to an estimated 952 units resold in July. This compares to 1,054 units resold in June 2017.

Year on year, July's resale volume was 20.1 per cent higher compared to 793 units resold in July 2016.

That both prices and transactions have risen on a year-on-year basis, despite falling month on month, is evidence that the property market is indeed on the mend, Mr Mak said.

Last month, official data from the Urban Redevelopment Authority (URA) showed a surge in private home sales across both primary and secondary markets. In the first half of 2017, the total transaction volume was 12,107 units, up 63.7 per cent from H1 2016.

URA's benchmark private home price index also dipped 0.1 per cent quarter on quarter in Q2 2017 - the smallest of the 15 consecutive quarter-on-quarter declines since the peak in Q3 2013.