Results 1 to 4 of 4

Thread: Resale, rental prices of non-landed private homes down in Dec

  1. #1
    Join Date
    May 2012
    Posts
    2,429

    Default Resale, rental prices of non-landed private homes down in Dec

    http://www.businesstimes.com.sg/brea...n-dec-20140113

    Resale prices of non-landed private homes declined 0.2 per cent in December last year, marking the fourth straight monthly drop in SRX’s overall property resale index released on Monday.
    The Core Central region (CCR) saw the largest decline at 2.3 per cent, followed by Outside Central region's (OCR) decline of 1 per cent. The Rest of Central region (RCR) bucked the overall trend by registering a price increase of 2.9 per cent.
    Rents also slipped another 1.3 per cent in December, reflecting a sustained weakening of rents for the fifth consecutive month.
    “This is the weakest rental prices observed since December 2011,” said SRX.

  2. #2
    Join Date
    May 2012
    Posts
    2,429

    Default

    http://sbr.com.sg/residential-proper...medium=twitter

    See which region bucked the trend.

    According to PropNex, December private property prices continue to support the current trend of buyers becoming more cost-conscious in their property purchases. According to the flash report from Singapore Real Estate Exchange (SRX), private property prices in the secondary market slid 0.2% in December 2013—with both CCR and OCR dropping 2.3% and 1.0% respectively. In contrast, properties in the RCR bucked the trend with a price appreciation of 2.9%.
    “I believe that secondary resale prices are taking cue from the primary market whereby many developers have slashed their launch prices in a bid to attract buyers”, explained Mr Mohd Ismail, CEO of PropNex Realty, “in addition to the weak market sentiments, the large oncoming supply and various measures in place have worked to further dampen demand.”
    However, Mr Ismail is of the opinion that many investors are also waiting for a good deal before committing to a purchase decision.Post TDSR and increased ABSD, property sentiment is expected to continue to be muted in the immediate future. However, the longer term prospects for the Singapore real estate market remain intact, supported by steady population growth, rising affluence and the allure of property as an investment tool for locals.
    But projects of perceived value – such as those in good locations, are in an area of limited supply and/or are offered at lower prices than other units in the vicinity – should continue to shore up demand.
    For 2014, prices could dip further—as the latest set of cooling measures will have a deeper and more sustained impact on demand fundamentals. However, severe price corrections are unlikely, barring economic shocks.
    Mr Mohd Ismail concluded, “with the bulk of completions coming from the mass market and RCR, I do foresee a marginal price correction of less than 3% in these 2 regions. In the CCR, prices could ease further as the ABSD and TDSR continue to bite. Collectively, both the measures will continue to have a significant impact on the resale market. However, RCR might be a bright spot as they benefit from their location close to the city and lower prices than CCR offerings. This will appeal to many investors who are looking for value-for-money buys near to the CCR.”

  3. #3
    Join Date
    Oct 2011
    Posts
    10,829

    Default Resale home prices down 0.2% - fourth fall in a row

    http://www.straitstimes.com/archive/...l-row-20140114

    Resale home prices down 0.2% - fourth fall in a row

    City centre leads decline at 2.3 per cent, but city-fringe units buck the trend

    Published on Jan 14, 2014

    By Cheryl Ong


    RESALE home prices dropped for a fourth straight month, as the festive season and tough loan rules continued to dampen buying demand.

    The Singapore Real Estate Exchange (SRX) resale price index fell to a new low last month, slipping a further 0.2 per cent from the preceding month, according to flash estimates out yesterday.

    In November, prices of non-landed resale homes had fallen 0.8 per cent.

    Analysts said fewer buyers were out and about looking for properties amid last month's festivities, and that the buying appetite remained weak since tougher loan rules reined in the red-hot market in July.

    Prices in the city centre led the decline, with a 2.3 per cent slide.

    In suburban areas, prices registered a smaller 1 per cent dip.

    However, city-fringe units bucked the trend, with a 2.9 per cent climb.

    Resale volumes remained flat as an estimated 377 non-landed homes changed hands, on par with the 375 units sold in November.

    Mr Mohamed Ismail, chief executive of PropNex Realty, said the weak resale market was in line with lower prices registered at new property launches, as developers cut prices to make units more affordable.

    Buyers anticipating further cuts at new projects in the next few months are likely to compare the prices of resale properties - usually lower - against these reduced prices, added R'ST Research director Ong Kah Seng.

    Home seekers are spoilt for choice, as a result, and are looking for a good deal before committing to a property, said Mr Ismail.

    City-fringe homes managed the increase despite weak sentiment over their location, analysts said.

    Such units are still the preferred choice of expatriates, thanks to the convenience of being near the city and will appeal more to investors, said Mr Ong.

    Their lower prices compared with city-centre homes also appeal to buyers looking for "value for money".

    However, the bulk of new home completions this year will be on the city fringes and in the suburbs. This should drive down prices of homes there by about 3 per cent, estimated Mr Ismail.

    Overall rental prices fell for the fifth month running, declining 1.3 per cent in December from November.

    The dip was again led by rentals in the city centre, which registered a 1.8 per cent dip. On the city fringe, rents dipped by 0.9 per cent, while rents in the suburbs fell 0.5 per cent.

    "It continues to be a tenants' market with flexible landlords," said ERA Realty key executive officer Eugene Lim. "This is owing to new supply of completed buildings and the cut in foreign manpower employment."

    [email protected]

  4. #4
    Join Date
    Oct 2011
    Posts
    10,829

    Default Private resale home prices slip further

    http://www.businesstimes.com.sg/arch...rther-20140114

    Published January 14, 2014

    Private resale home prices slip further

    By Mindy Tan [email protected]


    [SINGAPORE] Prices of private resale homes extended their decline in December for a fourth straight month, led by falls in the core central region (CCR), flash figures released yesterday by the Singapore Real Estate Exchanges (SRX) showed.

    This trend is likely to continue into 2014, say consultants, as the Total Debt Servicing Ratio (TDSR) framework and other cooling measures take their toll.

    Prices of homes in the city area fell 2.3 per cent in December, followed by those in the Outside Central Region (OCR), which dipped one per cent. Only homes in the Rest of Central Region (RCR) bucked the trend, rising 2.9 per cent. Overall, the price index eased 0.2 per cent last month.

    "I believe that secondary resale prices are taking their cue from the primary market where many developers have slashed their launch prices in a bid to attract buyers," said Mohd Ismail, chief executive officer of PropNex Realty.

    The decline in CCR resale prices is not surprising, given the ample unsold stock by developers and the impact of the TDSR and Additional Buyers' Stamp Duty (ABSD) on prospective buyers, said Ong Kah Seng, director at R'ST Research. Meanwhile, in the OCR, buyers are resisting prices which have hit an all-time high.

    Prices in the RCR, on the other hand, have become more "realistic" after developers and owners lowered asking prices last year. Opportunistic investors could have snapped up units in December, driving up prices, on the belief that it is easier to rent units to expatriates in the early part of the year.

    As at last Friday, 98 CCR, 85 RCR and 176 OCR transactions were lodged. SRX estimates that some 377 homes were transacted on the secondary market last month, taking into account delays in lodging the data. The figures are based on lodgements made by 401 agents (including those who co-broke deals) from SRX's member agencies.

    The total number of private non-landed transactions fell to an estimated 6,550 last year from 12,278 in 2012.

    Property sentiment is expected to remain muted in the near future as resale prices continue to be under pressure as developers cut prices for new launches to move units. Demand will also wane as buyers favour new launches over resale units because of lower upfront cash requirements, said Steven Tan, managing director of OrangeTee.

    "In this softening rental market, some investors would prefer to buy new launches to avoid vacancy costs," he added.

    As a result of falling cash-over-valuations (COVs), the potential pool of HDB upgraders becomes smaller as upgraders would not be able to equitise their flats for as much as before, noted Mr Tan.

    PropNex's Mr Ismail expects marginal price corrections of less than 3 per cent in the RCR and OCR, where the bulk of completions is expected. In the CCR, prices could ease further as the ABSD and TDSR continue to bite, he reckons.

    Eugene Lim, key executive officer of ERA Realty, expects prices to ease further by between 6 and 10 per cent this year.

    With an estimated 20,000 private residential homes expected to be completed this year, sellers and landlords will face increased competition for buyers and tenants, said Lee Lay Keng, head of Singapore Research at DTZ.

    SRX said overall rents slipped 1.3 per cent in December for the fifth consecutive month. Rents in the CCR dropped 1.8 per cent followed by rents in the RCR which dipped 0.9 per cent. Rents for OCR homes slipped 0.5 per cent. An estimated total of 2,188 rentals were recorded in December.

    The SRX price index is computed using a hedonic regression model. The index is thus revised when new data comes in. The model is frequently used to construct housing price index, in the absence of specific market data.

Similar Threads

  1. Resale prices of non-landed private homes edge up again
    By reporter2 in forum Singapore Private Condominium Property Discussion and News
    Replies: 1
    -: 18-07-16, 22:07
  2. Rental volumes of private non-landed homes in Singapore rise as rents slip in May
    By reporter2 in forum Singapore Private Condominium Property Discussion and News
    Replies: 0
    -: 16-06-16, 01:16
  3. Resale prices of non-landed private homes in CCR up 2.8% in Sept: SRX
    By propertycarrots in forum Singapore Private Condominium Property Discussion and News
    Replies: 0
    -: 13-10-15, 14:39
  4. Rental yields of non-landed private homes down at 3.9%
    By reporter2 in forum Singapore Private Condominium Property Discussion and News
    Replies: 22
    -: 27-01-14, 10:44
  5. Non-landed private homes' resale prices up 7.3% in Jan-Oct period
    By reporter2 in forum Singapore Private Condominium Property Discussion and News
    Replies: 7
    -: 20-11-12, 12:54

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •