http://www.businesstimes.com.sg/real...ale-price-rise

Prime region leads private-home resale price rise

January resale prices in Core Central Region increase 1.9% from a month ago, as the private residential overall resale index goes up by 1.1% month on month: SRX Property

Wednesday, February 15, 2017

by Lynette Khoo
[email protected]
@LynetteKhooBT


THE first month of 2017 saw a continued momentum in the high-end residential property segment, with resale prices in the Core Central Region (CCR) making a 1.9 per cent rise from a month ago and a 2.7 per cent increase from a year ago, based on SRX Property estimates.

This helped to lift SRX Property's overall resale index for the private residential market by 1.1 per cent month on month in January and 0.3 per cent from a year ago.

In the city fringe or Rest of Central Region (RCR) and suburban areas or Outside Central Region (OCR), resale prices also rose, by 1.5 per cent and 0.4 per cent respectively.

But compared with a year ago, resale prices in the RCR and OCR recorded falls of 0.1 per cent and 1.1 per cent respectively last month.

SRX Property revised the price change in December 2016 from a 0.4 per cent rise to 0.5 per cent increase.

Resale volumes in January marked a 9.1 per cent increase from December and 29.9 per cent from a year ago, based on resale data compiled by SRX Property.

An estimated 526 non-landed resale private units were sold last month. But resale volumes were still 74.3 per cent below the peak of 2,050 units in April 2010, SRX Property said on Tuesday.

Lee Nai Jia, head of South-east Asia research at Edmund Tie and Company, reckoned the resale prices in the CCR will remain resilient in 2017, as there remains interest for such properties.

"Transaction volume is anticipated to improve, given Singapore real estate remains relatively more attractive than other assets," he said. With prices largely stabilising and sales improving, the likelihood of fine-tuning of property cooling measures seems unlikely, Dr Lee said.

R'ST Research director Ong Kah Seng said he expects the CCR to continue leading resale price movements this year given the pent-up buying demand after a long lull. But he reckoned that prices are unlikely to stage a remarkable monthly price increase in the months ahead. This is because recent buying activities in the CCR are in part driven by developers' innovative schemes for completed condominiums and attractive pricing.

On the whole, transaction volumes this year may improve from last year with total resale volumes likely to exceed that of 2016 by up to 15 per cent, Mr Ong said.

But amid a weak leasing market, there could be some pricing pressures from owners who just crossed their four-year holding period, so they are able to sell their units without incurring the seller's stamp duty. The owners, whom Mr Ong categorised as those who rushed in to buy from 2011 to 2013, may be more willing to cut prices.