Jul 30, 2013

    Singapore resale-home prices fell last month

    RESALE-HOME prices fell 0.4 per cent last month from May, as more property buyers opted for new launches.

    The rate of decline was slightly steeper than the 0.2 per cent dip from April to May, according to flash Singapore Residential Price Index (SRPI) figures released yesterday by the National University of Singapore.

    The SRPI reflects the secondary market as it looks at transactions of completed properties.

    Analysts said that the resale market could have weakened last month owing to lower sales activity during the June school holidays.

    Some buyers may also have held back their purchases because of the uncertainty over possible rising interest rates, said DTZ Singapore research head Lee Lay Keng.

    Jones Lang LaSalle Singapore research director Ong Teck Hui put the overall decline down to "abundant opportunities for buyers in the primary market, as well as owners of resale homes asking for optimistic prices".

    But Suntec Real Estate research head Colin Tan said the SRPI decline last month was "not deep enough to signal a future downward price trend" yet.

    Analysts said that resale prices this month were likely to hover near last month's or weaken.

    Ms Lee said: "Going forward, sentiment and transaction volume could be weaker, as the market starts to feel the impact of the stricter financing rules that were implemented late last month."

    Mr Tan said that liquidity still remains in the market, so prices are unlikely to fall significantly.