Resale condo prices steady after 5 months of increases

[reporter2]

Resale condo prices steady after 5 months of increases

MAY 10, 2017

Ann Williams


Resale prices of non-landed private homes in Singapore were unchanged in April from March, putting a stop to five straight months of month-on-month price rises, SRX Property's flash estimates showed yesterday.

The report also showed the number of resale transactions fell 21 per cent in April from March.

However, this came as sellers hiked their asking prices to above perceived market rates - the first time they have crossed that line in at least two years.

By location, the city fringes and outlying areas recorded month-on-month price increases of 1.2 per cent and 0.1 per cent respectively, while the prime districts saw prices decline by 1.2 per cent.

Private resale prices rose an upwardly revised 0.8 per cent month on month in March, 1 per cent in February, 0.9 per cent in January, 0.3 per cent last December and 0.6 per cent last November.

Year on year, private resale prices last month were 1.8 per cent higher than in April 2016, though still down by 5.4 per cent from their recent peak in January 2014.

An estimated 907 units changed hands in April, down 21 per cent from the 1,148 resale units for March. Year on year, resale volume last month was 48 per cent higher, compared with 613 units resold in April 2016. Resale volume was still down by 55.8 per cent, compared with its peak of 2,050 units in April 2010.

SRX's overall median Transaction Over X-Value (TOX) - how far above or below computer-generated market values that units are going for - rose to $5,000 in April from zero in March.

For districts with more than 10 resale transactions in April, districts 16 (Bedok and Upper East Coast) and 21 (Clementi Park and Upper Bukit Timah) posted the highest median TOX of $37,000. Among relatively active districts, district 11 (Newton and Novena) posted the most negative median TOX of -$40,000.

[reporter2]

Condo resale prices unchanged in April but volumes down: SRX

1.2% dip in prices in prime region puts brakes on rest of market; SRX's resale price index at its worst in 6 months

May 10, 2017

LYNETTE KHOO


RESALE prices of non-landed private homes in Singapore were flat in April compared to March 2017, flash estimates from SRX Property show.

The key drag came from the prime region or Core Central Region (CCR), which posted a price decrease of 1.2 per cent during the month. The city-fringe (Rest of Central Region) and suburban areas (Outside Central Region) put up a 1.2 per cent and 0.1 per cent increase respectively.

This is the worst showing in six months for SRX Property's resale price index for non-landed homes and the first dip in the CCR region over the same period.

But JLL national director of research and consultancy Ong Teck Hui said that he would not interpret this negatively for now, as market sentiments are still positive and secondary sales volume in the first quarter was significantly higher than in the preceding quarter and the year-ago period.

"It still goes back to the fundamentals," he added.

"If the sentiment still remains positive in the second half and buying fervour is there, both prices in the primary and secondary market will be supported. There is a chance that overall private non-landed prices will bottom out by end of this year or sometime this year."

Edmund Tie & Company head of South-east Asia research Lee Nai Jia was similarly sanguine, expecting resale prices for private non-landed homes to trend up by year-end as investment sentiment is improving and more Singaporeans are streaming back to the market from the sidelines.

"Most buyers have a more positive outlook of the market and the recent sales take-up in new launches and land bids further reinforced the sentiments," he said.

Dr Lee noted that the improvement in resale prices in the RCR and OCR in April was catalysed by recent new launches that were priced higher, resulting in some spillover demand for resale units.

SRX Property flash estimates show that compared to a year ago, resale prices of private non-landed homes were 1.8 per cent higher on the back of broad-based year-on-year increases across regions, led by the CCR where prices rose 4.6 per cent, followed by RCR's 1.6 per cent and OCR's 0.5 per cent growth.

There were fewer resale transactions in April than in March, based on SRX Property's estimate of 907 transactions in April, a 21 per cent decrease from March but a 48 per cent increase from a year ago.

SLP International executive director Nicholas Mak felt that this may suggest that the spike in the resale volumes in March, attributable to the euphoria following a minor adjustment to the seller's stamp duty, was unsustainable.

The resale volume could possibly fall by another 10-15 per cent in the coming months before stabilising, he projected.

Last month, the first-quarter data released by the Urban Redevelopment Authority offered much cheer, with private home transactions hitting the highest level in 15 quarters at 5,202 units and the 0.4 per cent drop in private home prices being the smallest in the past 14 quarters.