Private apartment resale prices 'bottoming out'

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http://www.straitstimes.com/archive/...g-out-20150529

Private apartment resale prices 'bottoming out'

Marginal changes suggest that, say experts; prices fell 0.1% in April over March

Published on May 29, 2015 1:30 AM

By Rennie Whang


RESALE prices of private apartments flatlined again last month, suggesting that the fall in values may be bottoming out.

Prices fell just 0.1 per cent in April over March, according to flash estimates of the National University of Singapore (NUS) Institute of Real Estate Studies. That followed a 0.3 per cent gain in March over February and a 0.1 per cent fall from January to February.

Such marginal changes seem to suggest resale prices are gradually reaching a floor after the Total Debt Servicing Ratio was imposed in mid-June, experts said.

Overall prices of resale condos have slipped about 2.2 per cent in the past 12 months, going by the NUS Singapore Residential Price Index. The overall index is also down about 9.0 per cent from its peak in July 2013.

But the drop seen now is modest compared with the declines in the fourth quarter of last year, said SLP International executive director Nicholas Mak.

Resale prices recorded a 5 per cent year-on-year fall in each month of the fourth quarter.

"If we see another two or three months of very small percentage changes in price, it could mean property prices are starting to hit bottom," he added.

Higher sales provided a support for prices last month. According to caveats, 423 private non- landed homes were resold last month, up from 351 in March. It is also up from 386 units that were resold in April last year.

Last month's price fall was mainly due to a 0.1 per cent month-on-month dip in the central region, which comprises Districts 1 to 4 and 9 to 11. Central region unit prices were unchanged in March and are down about 4.6 per cent from a year earlier.

Prices of non-central units were unchanged last month after rising 0.7 per cent in March. They are up 0.1 per cent year on year.

Positive sentiment may have spilled over from the developer sales market last month to bolster prices of completed suburban condos, said R'ST Research director Ong Kah Seng. The launches of Botanique at Bartley and North Park Residences in Yishun received strong interest from buyers in April.

Prices of small units - those up to 506 sq ft - rose 0.4 per cent in April after falling 0.5 per cent in March. But prices of such units tend to be more volatile as fewer are transacted every month. Prices for the segment are down about 1.4 per cent year on year.

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http://www.businesstimes.com.sg/real...pril-nus-index

Prices of completed condos down 0.1% in April: NUS index

By Lee Meixian

[email protected].g@LeeMeixianBT

May 29, 2015


PRICES of completed non-landed private homes in Singapore fell 0.1 per cent in April over March, according to the National University of Singapore (NUS) flash estimate released on Thursday.

R'ST Research director Ong Kah Seng said this shows that buyers are maintaining a generally cautious stance when buying completed properties due to the substantial new completions coming up which will intensify leasing competition.

"That said, the 0.1 per cent decrease shows it wasn't a very big price decline for resale properties in April. Botanique at Bartley and North Park Residences achieved strong buyers' interest in April. Many would have thought that this would divert buyers from resale to developer sales.

"However, it seems that some buzz from the developer sales segment in April might have filtered through to resale property buying, because April's resale property prices staged a fairly stable picture. Very likely, the positive buying sentiments in April for developer sales have improved overall property sentiment - albeit only for a while in April. This allowed owners to maintain the selling prices of their completed properties."

According to Mr Ong, the profile of buyers for developer projects and resale properties are different. Resale buyers need to occupy the unit almost immediately, while those buying developer projects can afford to wait.

Meanwhile, the sub-index for Central Region (excluding small units of up to 506 square feet) fell 0.1 per cent in April. Central Region is defined by the university's Institute of Real Estate Studies (IRES) as districts 1-4, including the financial district and Sentosa Cove, plus the traditional prime districts 9, 10 and 11.

The sub-index for Non-Central Region (again excluding small units) was flat in April.

Islandwide, prices of small apartment and condo units rose 0.4 per cent.

IRES also published the revised index values for March, which showed overall prices rising 0.3 per cent from February, a slightly steeper incline than the 0.2 per cent increase earlier estimated.

[Arcachon]

They can rise the bar to keep the water from overflowing, time will sent the water to overflow soon.

[teddybear]

I see signs that prices are beginning to crack at OCR private property prices!
Eg., in Sengkang, a condo previously transacting at close to $1200 psf was recently transacted at only $900+ psf! Mind you, this is condo very close to Buangkok MRT station and all those shops and eateries at nearby HDB flats (i.e. at a choice location in Sengkang!)
Many more of such cases to come soon.........
OCR private property prices going to crash!!!!!!!!!!!!!!!

http://www.straitstimes.com/archive/...g-out-20150529

Private apartment resale prices 'bottoming out'

Marginal changes suggest that, say experts; prices fell 0.1% in April over March

Published on May 29, 2015 1:30 AM

By Rennie Whang


RESALE prices of private apartments flatlined again last month, suggesting that the fall in values may be bottoming out.

Prices fell just 0.1 per cent in April over March, according to flash estimates of the National University of Singapore (NUS) Institute of Real Estate Studies. That followed a 0.3 per cent gain in March over February and a 0.1 per cent fall from January to February.

Such marginal changes seem to suggest resale prices are gradually reaching a floor after the Total Debt Servicing Ratio was imposed in mid-June, experts said.

Overall prices of resale condos have slipped about 2.2 per cent in the past 12 months, going by the NUS Singapore Residential Price Index. The overall index is also down about 9.0 per cent from its peak in July 2013.

But the drop seen now is modest compared with the declines in the fourth quarter of last year, said SLP International executive director Nicholas Mak.

Resale prices recorded a 5 per cent year-on-year fall in each month of the fourth quarter.

"If we see another two or three months of very small percentage changes in price, it could mean property prices are starting to hit bottom," he added.

Higher sales provided a support for prices last month. According to caveats, 423 private non- landed homes were resold last month, up from 351 in March. It is also up from 386 units that were resold in April last year.

Last month's price fall was mainly due to a 0.1 per cent month-on-month dip in the central region, which comprises Districts 1 to 4 and 9 to 11. Central region unit prices were unchanged in March and are down about 4.6 per cent from a year earlier.

Prices of non-central units were unchanged last month after rising 0.7 per cent in March. They are up 0.1 per cent year on year.

Positive sentiment may have spilled over from the developer sales market last month to bolster prices of completed suburban condos, said R'ST Research director Ong Kah Seng. The launches of Botanique at Bartley and North Park Residences in Yishun received strong interest from buyers in April.

Prices of small units - those up to 506 sq ft - rose 0.4 per cent in April after falling 0.5 per cent in March. But prices of such units tend to be more volatile as fewer are transacted every month. Prices for the segment are down about 1.4 per cent year on year.

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[Arcachon]

Serious, quick go and buy.

Can share more info

[Kelonguni]

I see signs that prices are beginning to crack at OCR private property prices!
Eg., in Sengkang, a condo previously transacting at close to $1200 psf was recently transacted at only $900+ psf! Mind you, this is condo very close to Buangkok MRT station and all those shops and eateries at nearby HDB flats (i.e. at a choice location in Sengkang!)
Many more of such cases to come soon.........
OCR private property prices going to crash!!!!!!!!!!!!!!!

Sengkang HDB is the top searched in Propertyguru. I think with the high prices islandwide, this is one area that is vibrant and young and yet still affordable for the masses. The HDBs will continue to have high subscription level.

Private would be really hard to say. Are you sure you are referring to the same condo with the same size? Even at 900 psf, it's still not considered crash leh. New BUC family-sized private units can be bought around the vicinity for this pricing still...

[thomastansb]

Sengkang HDB is one of the worst performing, together with Punggol. But to say a condo has dropped from 1.2k to 900 psf is ridiculous as well. No condo name, no unit number, no past transactions for reference.

[Kelonguni]

Sengkang HDB is one of the worst performing, together with Punggol. But to say a condo has dropped from 1.2k to 900 psf is ridiculous as well. No condo name, no unit number, no past transactions for reference.

True also. Lowest prices but top searched area (according to propertyguru). Might need more data on the number of transactions in each town to understand why. Who are the likely groups and why do they choose that area?

[thomastansb]

Maybe it is cheap? Like Buangkok MRT. Those 4 bedrooms used to transact 600 to 640k. Now, the sellers will be happy if they can get a 520k. But overall, I think young people generally prefer that area and also, the prices aren't as high as other area. Say Clementi or Bedok but travelling time is similar if you are going to town.

True also. Lowest prices but top searched area (according to propertyguru). Might need more data on the number of transactions in each town to understand why. Who are the likely groups and why do they choose that area?