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17-06-14, 21:15
http://www.straitstimes.com/archive/tuesday/premium/money/story/non-landed-private-home-resale-prices-hit-7-month-low-20140610
Non-landed private home resale prices hit 7-month low
Published on Jun 10, 2014 1:25 AM
By Cheryl Ong
CHILL winds continued to blow over the private housing resale market, with prices slumping to a seven-month low last month.
Resale prices of non-landed private homes, such as condominium units, slipped 0.3 per cent last month compared with April, according to the Singapore Real Estate Exchange.
Prices in the private resale market have not been this weak since November. The price index stood then at 173.4, while last month's price index, compiled from data provided by the major property agencies here, stood at 173.
The number of homes exchanging hands also crashed, falling to 421 last month, 7.5 per cent lower compared with April.
Last month's number of transactions was also 42.6 per cent lower compared with the same period last year, highlighting a sharp decrease in demand.
Market watchers blamed the poor performance on property cooling measures and the launch of cheaper new properties.
Mr Eugene Lim, key executive officer of property firm ERA Realty, said buyers are feeling the tough loan limits.
"Buyers are limited by the amount of debt they can take and are likely to shy away from higher-priced properties," said Mr Lim. "They may have diverted their attention to hot new projects that were launched by developers at attractive prices."
He noted that City Developments' Commonwealth Towers, for instance, recorded brisk sales with "attractive prices". Prices start from $721,000 for a 441 sq ft one-bedder.
Homes in the city centre led the dip in last month's resale prices, falling 2.9 per cent from April.
Mr Ong Kah Seng, director of property consultancy R'ST Research, said asking prices in the luxury segment could have been hit as investors are aware of the competitive rental market and weak leasing demand.
Luxury units that remain unsold have made developers more willing to negotiate prices, so sellers cannot afford to compete with higher asking prices, added Mr Lim.
Prices of suburban resale homes fell 0.3 per cent, but those in city-fringe locations inched up 0.6 per cent.
There were more rental deals signed last month, rising 3.7 per cent from April to an estimated 3,120 units. This improved by 7.9 per cent from the 2,891 rental contracts signed in May last year. But rents of private non-landed homes dipped last month, slipping 0.8 per cent from April.
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Non-landed private home resale prices hit 7-month low
Published on Jun 10, 2014 1:25 AM
By Cheryl Ong
CHILL winds continued to blow over the private housing resale market, with prices slumping to a seven-month low last month.
Resale prices of non-landed private homes, such as condominium units, slipped 0.3 per cent last month compared with April, according to the Singapore Real Estate Exchange.
Prices in the private resale market have not been this weak since November. The price index stood then at 173.4, while last month's price index, compiled from data provided by the major property agencies here, stood at 173.
The number of homes exchanging hands also crashed, falling to 421 last month, 7.5 per cent lower compared with April.
Last month's number of transactions was also 42.6 per cent lower compared with the same period last year, highlighting a sharp decrease in demand.
Market watchers blamed the poor performance on property cooling measures and the launch of cheaper new properties.
Mr Eugene Lim, key executive officer of property firm ERA Realty, said buyers are feeling the tough loan limits.
"Buyers are limited by the amount of debt they can take and are likely to shy away from higher-priced properties," said Mr Lim. "They may have diverted their attention to hot new projects that were launched by developers at attractive prices."
He noted that City Developments' Commonwealth Towers, for instance, recorded brisk sales with "attractive prices". Prices start from $721,000 for a 441 sq ft one-bedder.
Homes in the city centre led the dip in last month's resale prices, falling 2.9 per cent from April.
Mr Ong Kah Seng, director of property consultancy R'ST Research, said asking prices in the luxury segment could have been hit as investors are aware of the competitive rental market and weak leasing demand.
Luxury units that remain unsold have made developers more willing to negotiate prices, so sellers cannot afford to compete with higher asking prices, added Mr Lim.
Prices of suburban resale homes fell 0.3 per cent, but those in city-fringe locations inched up 0.6 per cent.
There were more rental deals signed last month, rising 3.7 per cent from April to an estimated 3,120 units. This improved by 7.9 per cent from the 2,891 rental contracts signed in May last year. But rents of private non-landed homes dipped last month, slipping 0.8 per cent from April.
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