Private home resale prices at 18-month low

HEADING DOWN: Resale prices of private homes are at their lowest level since December 2012, and are down 4.7 per cent this year, Singapore Real Estate Exchange said. PHOTO: THE STRAITS TIMES


    Jul 15, 2014

    Private home resale prices at 18-month low

    THE resale prices of private homes here have fallen to an 18-month low despite a small pickup in the number of units sold.

    Compared to May, prices fell 1.4 per cent last month with declines across all regions in Singapore, data from the Singapore Real Estate Exchange (SRX) showed.

    Prices are at their lowest level since December 2012 and are down 4.7 per cent this year, SRX said.

    An estimated 452 resale transactions were registered last month, a 7.9 per cent increase from May.

    But this was still 23.8 per cent less than the 593 properties resold in June last year.

    The city fringe led the decline, with a fall of 3.2 per cent. Resale prices fell 1.7 per cent in the city centre and dipped 0.3 per cent in the suburbs.

    Buyers had to look at the resale market as there were fewer launches last month, due to the school holidays and the World Cup, said Christine Li, research head at OrangeTee. This could have contributed to the rise in transaction volume.

    At the same time, "in line with the price drop in the retail market in the last few months, asking prices have reduced", Ms Li said.

    With rents falling, resale demand will continue to be weak, she added.

    Rental prices last month slipped by 0.8 per cent compared to May, and are 6.5 per cent down from their peak in January last year.

    The rental volume rose slightly, with the number of rental contracts rising by 2.2 per cent over May.

    Loan curbs and recent launches by developers have taken the shine off the resale market, and PropNex Realty said in a statement yesterday.

    There will be continued downward pressure on resale prices as more developments are completed, it said.

    "The resale market will continue to decline for the rest of the year. However, it is likely that the market will be livelier towards the end of the year, as some buyers may want to take advantage of the price decline to make purchases," said Mohd Ismail, chief executive of PropNex. "Resale prices will continue to fall, with sellers becoming more realistic due to the reduced demand."