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Thread: Condo prices in central region inch higher in July

  1. #1
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    Default Condo prices in central region inch higher in July

    http://www.straitstimes.com/business...higher-in-july

    Condo prices in central region inch higher in July

    Aug 30, 2016

    Rennie Whang


    Prices of completed apartments in the central region rose a touch last month after a similar increase in June, prompting experts to tip that the segment may be hitting bottom soon.

    Values rose 0.7 per cent in July from June, and follow June's 0.9 per cent lift but they are still down 1.3 per cent from a year earlier.

    The non-central region has not fared as well; prices were down 2.3 per cent year on year, according to NUS Singapore Residential Price Index (SRPI) data yesterday.

    Prices of completed apartments islandwide rose 0.2 per cent last month after increasing 0.7 per cent in June.

    The July lift was largely due to the better showing among central region apartments, which helped offset the 0.2 per cent fall in the non-central region.

    While prices of small units were unchanged last month, they have fallen the most compared with a year back - recording a 4.4 per cent decline, noted Mr Ong Teck Hui, JLL national research director.

    The large price drop is due to weaker demand for small resale units, he said.

    New sales of small units in the 12 months to the end of July accounted for 78 per cent of total sales of small units.

    "This indicates that new projects provide more opportunities that meet the needs of small-unit buyers, drawing them away from the resale market," said Mr Ong.

    NUS SRPI data on the central region was corroborated by other industry observers.

    "Prices have somewhat stabilised and people have been... on the sidelines for about two years.

    "So while some may still be waiting for prices to drop further, others have returned to the market," PropNex executive director Kelvin Fong said.

    Many developers, especially those with projects in Districts 9 and 10, have been coming up with various attractive schemes as well, so while the pick-up is largely across the board, it is strongest in the central region, he added.

    Sales by his team of about 2,600 agents rose about 50 per cent year on year last month.

    Transactions have slowed a tad this month, partly due to the Hungry Ghost Festival, but are still better than a year ago.

    The luxury property market still has buyers who wish to invest for the longer term, noted Ms Jennifer Chia, executive director and head of corporate real estate at TSMP Law Corporation.

    "Most of them have ties to Singapore - Singaporeans or permanent residents, or those who see Singapore as a place they will live in the longer term," she added.

    "People with the cash reserves to buy did not want to be caught off-guard if there were going to be changes to the Additional Buyer's Stamp Duty.

    "But now that the Government has been signalling cooling measures may not be lifted in the near future, they have decided not to hold off any longer."

    Rennie Whang

  2. #2
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    Default Small completed condos worst price performer in July from year ago

    http://www.businesstimes.com.sg/real...-from-year-ago

    Small completed condos worst price performer in July from year ago

    NUS flash estimates reflect 4.4% price contraction for small units of up to 506 sq ft islandwide

    By Kalpana Rashiwala

    [email protected]

    @KalpanaBT

    Aug 30, 2016


    SMALL completed private apartments and condos have been the worst performer year-on-year among the four Singapore Residential Price Index (SRPI) categories tracked by the National University of Singapore.

    Based on flash estimates for July 2016 released on Monday, the SRPI for small units of up to 506 sq ft islandwide has contracted 4.4 per cent on a year-on-year basis.

    Over the same period, the SRPI for Central Region (excluding small units) retreated 1.2 per cent while the sub-index for Non-Central Region (also excluding small units) fell 2.2 per cent. The decline in the Overall SRPI was 1.9 per cent.

    Savills Singapore research head Alan Cheong suggests that some of the "specuvestors" who bought small units prior to the introduction of the total debt servicing ratio (TDSR) framework had weak holding power. "Anecdotally, many property agents were among those who picked up small apartments during the heyday of the market.

    "Without the screening process of the TDSR, these buyers whose incomes are highly correlated to the volume of real estate transactions may now find themselves overstretched as they may be holding several properties.

    "Even taking a steeper percentage haircut in a smaller property, the absolute dollar loss is less than taking a smaller percentage haircut loss for a larger property. They would rather dump the small unit which has greater liquidity, than a large unit."

    JLL national director Ong Teck Hui offers another explanation for the relatively large year-on-year decline in prices of small completed apartments.

    "In the small units sub-market, new sales in the year to July 2016 accounted for 78 per cent of total sales of small units. In the three months between May and July 2016, the proportion was even higher, at 82 per cent.

    "This indicates that new projects provide more opportunities that meet the needs of small-unit buyers, drawing them away from the resale market."

    The July 2016 flash estimates from NUS's Institute of Real Estate Studies (IRES), which produces the SRPI series tracking the prices of completed non-landed private homes, also showed that the sub-index for Central Region climbed 0.7 per cent month on month in July, adding to June's 0.9 per cent rise.

    IRES defines Central Region as Districts 1-4 (including the financial district and Sentosa Cove) and the traditional prime residential districts of 9, 10 and 11.

    In the Non-Central Region, prices dipped 0.2 per cent m-o-m in July, against a 0.6 per cent rise in June.

    "The Central sub-market appears headed for an earlier bottoming, if the uptrend in the monthly indices can be maintained," said Mr Ong.

    In the month of July, the small unit islandwide index was flat over June - after rising 0.4 per cent in June.

    The Overall SRPI inched up 0.2 per cent month on month in July, following a 0.7 per cent month-on-month gain in June 2016.

  3. #3
    Join Date
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    Default

    price seems slightly up or down every month, better compare the quarterly result which i believe should still trending down.

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