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Thread: Resale condo prices decline further

  1. #1
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    Default Resale condo prices decline further

    http://www.straitstimes.com/business...ecline-further

    Resale condo prices decline further

    Sep 14, 2016

    Wong Siew Ying


    Resale prices of non-landed private homes slipped for a second straight month in August, after edging up from March to June - in a sign that the resale property market is still finding its footing.

    Flash estimates from SRX Property yesterday showed that prices fell 0.8 per cent last month from July. This followed a revised 0.7 per cent decline in July over June.

    "The second consecutive monthly drop in prices raises doubts about the expected stabilisation of prices. Price gains made from March to June this year have been nearly erased over the last two months," said Mr Wong Xian Yang, head of research and consultancy at OrangeTee.

    Analysts cited various reasons for the price dip last month, including the uncertain global economic conditions, weak sentiment and the traditional Chinese Hungry Ghost Festival, which typically sees weaker activity in the property market.

    The overall resale price index for non-landed private homes was down also by 0.8 per cent from August last year.

    Resale private condominiums on the city fringe led the price decline, falling by 1.5 per cent last month against July, while prices in suburban areas fell 0.7 per cent. Homes in the core central region, meanwhile, eked out a 0.1 per cent gain.

    SRX Property's data also showed that an estimated 817 resale units were sold last month, up 5.3 per cent from 776 in July. Sales in July were up by 10 per cent from the 705 units resold in June.

    PropNex Realty chief executive Ismail Gafoor said: "The two consecutive quarters of month-on- month sales increases point to greater confidence building among buyers that value is emerging in the secondary market."

    On a year-on-year basis, the sales volume was up a hefty 59.3 per cent last month.

    SRX's median transaction over X-value (TOX) - which measures whether buyers are overpaying or underpaying its computer-generated market value - came in at negative $11,000 last month. This was $1,000 more than the negative $10,000 in July.

    For districts with more than 10 resale transactions last month, District 20 (Bishan, Ang Mo Kio) posted the highest median TOX of positive $18,000. This means that a majority of the buyers in this district purchased units above the computer-generated market value.

    District 15 (Katong, Joo Chiat, Amber Road) posted the largest negative TOX of -$48,000, SRX data showed.

    Analysts said that in view of the lacklustre propery market, buyers still hold sway in price negotiations and sellers are also becoming more flexible about offering discounts.

    "Additionally, some forward-looking sellers are worried of a potential hike in the United States Fed rate which could lower the price further," said Dr Lee Nai Jia, head of research for South-east Asia at Edmund Tie & Company.

    Market watchers expect resale condo prices to continue to ease marginally for the rest of the year.

  2. #2
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    Default Resale condo prices ease for 2nd straight month: SRX Property

    http://www.businesstimes.com.sg/real...h-srx-property

    Resale condo prices ease for 2nd straight month: SRX Property

    By Kalpana Rashiwala

    [email protected]

    @KalpanaBT

    Sep 14, 2016


    RESALE prices of private apartments and condo units on the whole in Singapore have eased for the second consecutive month. SRX Property's August flash estimate shows that its overall resale price index for non-landed private homes fell 0.8 per cent month on month.

    This follows a revised 0.7 per cent month-on-month decline for July. SRX Property had earlier indicated a 0.4 per cent drop for July based on its flash estimate for that month.

    Giving a geographical breakdown, SRX Property said that prices in the city-fringe or Rest of Central Region (RCR) and the suburbs or Outside Central Region (OCR) shrank 1.5 per cent and 0.7 per cent respectively. On the other hand, prices in the Core Central Region (CCR) inched up 0.1 per cent.

    Year on year, the August overall resale price index for non-landed private homes was down 0.8 per cent. The subindices for RCR and OCR posted year-on-year price declines of 2.9 per cent and 1.9 per cent respectively. On the other hand, the sub-index for CCR climbed 4.6 per cent.

    The overall price index for August 2016 was down 7.8 per cent from the recent peak in January 2014.

    SRX Property estimated that 817 non-landed private homes were resold last month - up 5.3 per cent from the 776 units resold in July 2016.

    Last month's estimated resale volume was also up 59.3 per cent from the 513 units resold in August 2015 - but 60.1 per cent lower than the peak of 2,050 units in April 2010.

    SRX Property's data also showed that the overall median Transaction over X-Value (TOX) worsened to negative S$11,000 in August from negative S$10,000 in July.

    The median TOX measures how much people are overpaying or underpaying against the computer-generated estimated market value or the so-called X value.

    OrangeTee head of research and consultancy Wong Xian Yang said that the second consecutive monthly drop in the SRX overall resale price index for non-landed private homes raises doubts about the expected stabilisation in prices. "Price gains made from March to June 2016, have been nearly erased over the last two (July and August)."

    That said, interest rates remain relatively low and the recent tweak to the TDSR (total debt servicing ratio) rules relating to refinancing should enhance landlords' holding power, lending support to prices, he argues.

    "As long as the job market remains stable, I do not expect a sharp correction in prices. Barring any changes in housing policies and sudden deterioration in the economy, prices are expected to trend 'sideways', with slight fluctuations in both directions."

    Savills Singapore research head Alan Cheong, commenting on the 0.1 per cent gain in the CCR subindex in August, said that prices in the segment are being supported by developers' sales in delicensed projects and that such transactions should continue to underpin CCR prices in the coming months.

    "I believe that we are in the next phase of the private residential property cycle, one that will be characterised by volatility and stunted price growth due to structural economic issues hobbling the employment landscape.

    "However, the resale market will be more active, transaction-wise, than the new sale market - unless the government starts to increase confirmed-list land sales."

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