Private flat resale prices unchanged in May
RESALE prices of private apartments flatlined last month, but experts expect further falls.
Last month's values barely moved from April's after a decline of just 0.2 per cent from March to April. Overall, they are down 2.8 per cent from those of a year ago, according to flash estimates out yesterday for the SRX Property's price index.
"Prices have not varied much from about November... Any changes for the next six to 12 months are likely to be range bound," said Nicholas Mak, SLP International's executive director of research and consultancy.
Even any rollback in cooling measures might have limited upside, he added.
Yesterday's data tells a mixed story: Resale prices fell about 1.2 per cent in the central region last month over April's but rose 0.8 per cent in the city fringes and 0.3 per cent in the suburbs.
Resale volumes are expected to improve with an estimated 543 units sold, a 4.2 per cent increase from April and 33.1 per cent up from May last year.
Resale volumes have been gradually increasing all year, said Eugene Lim, ERA Realty's key executive officer, noting that buyers have been turning to the secondary market due to attractive prices and fewer launches of new projects.
While there are signs of a market revival, it is not evenly spread, said Tan Tee Khoon, Knight Frank's executive director of residential services.
"There has been some movement in the prime districts, as prices have fallen for a long time and they become value purchases for buyers on the hunt for attractive deals," he added.
In contrast, resale prices in the suburbs may still have some way to fall as the weakening leasing market takes its toll, experts said.