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Thread: Private-home resale prices dip 1%

  1. #1
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    Oct 2011
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    Default Private-home resale prices dip 1%

    http://www.businesstimes.com.sg/real...e-prices-dip-1

    Private-home resale prices dip 1%

    By Mindy Tan

    [email protected]

    @MindyTanBT

    Apr 29, 2016


    WHILE market watchers concur that private-home resale prices in Singapore will likely continue to decline at a gradual pace, buyers and investors are starting to hunt for value.

    According to flash estimates from the Singapore Residential Price Index (SRPI) released on Thursday, resale prices of private homes fell one per cent in March, reversing a marginal increase of 0.4 per cent a month earlier.

    Homes in the non-central region (excluding small units) led the price decline, falling 1.4 per cent from the previous month. In the central region, prices of homes (excluding small units) fell 0.5 per cent. This reversed gains of 0.4 per cent for homes in the non-central region (excluding small units) and 0.7 per cent for homes in the central region (excluding small units) seen in February.

    Eugene Lim, key executive officer of ERA Realty Network, said there might be less movement in prices in the central region in the coming months, as more buyers and investors hunt for value.

    Meanwhile, small units (those with a floor area of 506 square feet and below) fell one per cent in March compared to the previous month, according to the SRPI which is compiled by the National University of Singapore's Institute of Real Estate Studies. This was on the back of a similar one per cent fall in February.

    Lee Nai Jia, regional head (SEA), research, at DTZ, noted that overall, shoebox units have depreciated more than conventional units, citing competition from newly launched developments, which are located in prime locations and have better accessibility to more amenities.

    "Additionally, some owners that face difficulties subletting their shoebox apartments are willing to take a larger loss during a sale," he noted.

    Looking ahead, R'ST Research's Ong Kah Seng said he expects the increased buzz in developer sales to encourage buyers to firm up their decisions on whether or not to purchase a resale property. This will likely mitigate the monthly price fall of completed properties in the outside central region.

    That being said, he expects prices of completed properties in the non-central region to continue to decline or stagnate due to increased completion of suburban condominiums resulting in intensified leasing competition. Overall, he expects a full-year fall of about 5 per cent in the prices of completed properties in the outside central region.

    ERA's Mr Lim is also of the view that there will be marginal monthly fluctuations in the months ahead, with the general trend being a gradual price decline. He cited challenging economic conditions and weak economic growth and labour market.

    R'ST's Mr Ong noted that despite the headwinds, buyers are increasingly appreciative of the value proposition of completed homes versus developer sales. "Completed properties come in all shapes and sizes, conditions and designs - compared with developer sale (units) which tend to offer mainly properties with stylish design but are fairly 'shrunken (in) size', or contemporary projects which are 'too neat' and lack some (of that) interesting, old world, old feel charm. (A) handful of buyers like old completed properties which provides nostalgic feel and which are in niche, city fringe or quiet parts of suburban localities.

    "Intent buyers may be able to chance upon tastefully renovated units, and, it is unlikely that sellers are asking for significantly high prices in such weak market times - more or less they are asking for reasonable price premium or even market rates."

  2. #2
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    Default Resale prices of completed condos down in March

    http://www.straitstimes.com/business...-down-in-march

    Resale prices of completed condos down in March

    Apr 29, 2016

    Wong Siew Ying


    Resale prices of completed private apartments fell in March, snapping two straight months of marginal increases.

    Overall resale prices declined 1 per cent from February, owing to a sharper drop in suburban areas, according to flash estimates from the NUS Singapore Residential Price Index (SRPI).

    This followed the revised 0.5 per cent rise in February and a 0.2 per cent increase in January.

    The decline in March in resale prices for completed condomiuniums was broad-based, hitting all market segments.

    Units in non-central areas recorded the steepest drop, down 1.4 per cent.

    "This might be because of the larger supply in the suburbs," said ERA Realty Network key executive officer Eugene Lim.

    "Hence, a greater downward pressure on prices."

    PropNex Realty chief executive Ismail Gafoor said that resellers of suburban apartments may have to lower their asking price to stand out from the competition.

    "(They) face increased competition from developers who are continuing to launch projects at attractive prices and incentives, or are offering discounts for previously launched projects," he noted.

    Resale prices of non-landed homes in the central region dipped 0.5 per cent from February to March.

    Mr Lim said: "As more buyers and investors hunt for value in more central areas, we might see less movement in prices."

    The segments recorded price growth in February: a 0.4 per cent increase in non-central areas and 0.7 per cent in the central region.

    Resale prices of small units - those up to 506 square feet - fell 1 per cent in March, after declining by 1 per cent in February.

    Savills Singapore research head Alan Cheong told The Straits Times that resale prices will continue to remain "soft" in a buyer's market.

    "Who would want to sell in a weak market? Those who are selling now are likely to be under some pressure to sell, so they will be more open to accepting lower prices," added Mr Cheong.

    He said he expects overall resale prices of private homes to fall by 3 per cent this year.

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