Private condo prices continue to decline

[reporter2]

http://www.straitstimes.com/business...nue-to-decline

Private condo prices continue to decline

Dec 29, 2016

Wong Siew Ying


Prices of completed private condominiums continued to fall in November, suggesting that recovery is still some way off for resale homes.

Overall resale prices slipped 0.7 per cent last month from October - a stark decline following the revised 0.2 per cent dip from September to October.

Last month's price fall was led by units in the central region, according to flash estimates from the NUS Singapore Residential Price Index (SRPI) yesterday.

"It seems that price recovery for resale properties is still a long way ahead... price decline or stagnation is set to continue," said R'ST Research director Ong Kah Seng.

Mr Wong Xian Yang, head of research and consultancy at OrangeTee, added: "With rents still on a downtrend and the outlook on interest rates remaining unclear, buyers will continue to negotiate hard for lower prices."

Analysts also said the price fall was largely within expectations, owing to the weak sentiment in the property market and the typical lull in sales activity at this time of the year. Prices of completed condos were down across the board last month with the steepest decline seen in the central region, which fell by 0.8 per cent, much worse than the 0.3 per cent drop from September to October.

The SRPI defines the central region as districts one to four, including the financial district and Sentosa Cove, as well as the traditional prime residential districts of nine, 10 and 11.

Prices for completed units in the non-central region fell 0.7 per cent from October to November while those for small apartments - a floor area of up to 506 sq ft - dipped by 0.1 per cent.

Market watchers say resale prices of small condos could weaken further, especially those in the suburban areas, which face competition from public housing.

The last time all segments of the SRPI declined was in August, noted the Institute of Real Estate Studies at NUS, which computed the data.

"In the resale market today, whoever wants to sell now must be someone who is under some pressure - who would want to sell when things are slow? So these sellers are more willing to listen to offers and to give discounts," Savills Singapore research head Alan Cheong told The Straits Times.

OrangeTee expects overall resale prices for private properties to fall by up to 3.5 per cent this year, which could woo more buyers into the market next year.

As sales volume grows, "this should lead to a deceleration of price decline in 2017", Mr Wong said.

[reporter2]

http://www.businesstimes.com.sg/real...n-november-nus

Prices of completed condos dip 0.7% in November: NUS

Units (excluding small ones of 506 sq ft or less) in Central Region fare worst, falling 0.8% during the month

Thursday, December 29, 2016

by Lynette Khoo

[email protected]

@LynetteKhooBT


PRICES of completed private apartments and condominiums slipped 0.7 per cent in November from a month ago.

This is based on the flash estimate by National University of Singapore (NUS) for its overall Singapore Residential Price Index (SRPI) released on Wednesday.

Faring the worst during the month were completed units (excluding small units of 506 square feet or below) in the Central Region, which fell 0.8 per cent during the month, followed by a 0.7 per cent price drop for completed units outside this region.

These declines were steeper than the revised 0.3 per cent price dips in both regions in October.

The Central Region is defined as Districts one to four (including the financial district and Sentosa Cove) and the traditional prime residential Districts 9, 10 and 11 by the NUS's Institute of Real Estate Studies, which minted the SRPI series.

According to the sub-index for small units of 506 square feet or below, such units resumed their price fall, slipping 0.1 per cent in November after a 0.5 per cent rise in October.

The revised SRPI for October showed a 0.2 per cent dip in overall prices of completed non-landed residential units.

R'ST Research director Ong Kah Seng noted that the price decline for completed units is well within expectations amid a slowdown in transactions in the quiet year-end festive period when many property agents, owners and buyers may be away for vacation.

"It seems that price recovery or confirmed price increase for resale properties is still far and not quite visible yet," he said, explaining that cautious buying sentiments still prevail and buyers remain highly selective.

"The long winding road of gentle price decline or stagnation for private residential property prices is set to continue," Mr Ong said.

ERA Realty key executive officer Eugene Lim noted that the small units have been the better-performing segment in recent months. "This could be because they are currently at a very attractive price point, and are relatively affordable to buyers."

Official indices of the Urban Redevelopment Authority showed that prices and rents of private homes have fallen more steeply, by 1.5 per cent and 1.2 per cent respectively, in the third quarter from a quarter earlier.

Over the first three quarters of this year, private home prices have slipped 2.6 per cent, compared to 3.2 per cent in the same period last year.

[reporter2]

http://www.businesstimes.com.sg/real...n-november-nus

Prices of completed condos dip 0.7% in November: NUS

Units (excluding small ones of 506 sq ft or less) in Central Region fare worst, falling 0.8% during the month

Thursday, December 29, 2016

by Lynette Khoo

[email protected]

@LynetteKhooBT


PRICES of completed private apartments and condominiums slipped 0.7 per cent in November from a month ago.

This is based on the flash estimate by National University of Singapore (NUS) for its overall Singapore Residential Price Index (SRPI) released on Wednesday.

Faring the worst during the month were completed units (excluding small units of 506 square feet or below) in the Central Region, which fell 0.8 per cent during the month, followed by a 0.7 per cent price drop for completed units outside this region.

These declines were steeper than the revised 0.3 per cent price dips in both regions in October.

The Central Region is defined as Districts one to four (including the financial district and Sentosa Cove) and the traditional prime residential Districts 9, 10 and 11 by the NUS's Institute of Real Estate Studies, which minted the SRPI series.

According to the sub-index for small units of 506 square feet or below, such units resumed their price fall, slipping 0.1 per cent in November after a 0.5 per cent rise in October.

The revised SRPI for October showed a 0.2 per cent dip in overall prices of completed non-landed residential units.

R'ST Research director Ong Kah Seng noted that the price decline for completed units is well within expectations amid a slowdown in transactions in the quiet year-end festive period when many property agents, owners and buyers may be away for vacation.

"It seems that price recovery or confirmed price increase for resale properties is still far and not quite visible yet," he said, explaining that cautious buying sentiments still prevail and buyers remain highly selective.

"The long winding road of gentle price decline or stagnation for private residential property prices is set to continue," Mr Ong said.

ERA Realty key executive officer Eugene Lim noted that the small units have been the better-performing segment in recent months. "This could be because they are currently at a very attractive price point, and are relatively affordable to buyers."

Official indices of the Urban Redevelopment Authority showed that prices and rents of private homes have fallen more steeply, by 1.5 per cent and 1.2 per cent respectively, in the third quarter from a quarter earlier.

Over the first three quarters of this year, private home prices have slipped 2.6 per cent, compared to 3.2 per cent in the same period last year.