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Private-home resale volume up 34% from year earlier

SINGAPORE — The resale volume of non-landed private homes climbed 34 per cent last month, with 552 units changing hands, against 412 units sold in June last year, SRX Property flash estimates showed today (July 14), as a reduction of new launches diverted demand towards the resale market.

A Condominium in Singapore. TODAY file photo

A Condominium in Singapore. TODAY file photo

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SINGAPORE — The resale volume of non-landed private homes climbed 34 per cent last month, with 552 units changing hands, against 412 units sold in June last year, SRX Property flash estimates showed today (July 14), as a reduction of new launches diverted demand towards the resale market.

However, resale volumes declined 10 per cent from May’s 613 units because of the seasonal effect in June, when buyers typically hold off on property purchases and go on holidays. 

Mr Wong Xian Yang, senior manager of research and consultancy at OrangeTee.com, noted that 4,807 new units were launched in the first half of last year. He expects the launch tally for the same period this year to come up to about 3,500 units. 

“The reduction of new launches in the primary market would have diverted demand towards the resale market, and this would have an uplifting effect on prices. Barring any changes in cooling measures, we believe there is still room for prices, especially in the Outside Central Region, to go lower, in view of declining rents and the residential supply overhang,” Mr Wong said. 

On a month-on-month basis, resale prices inched up 0.4 per cent from May, driven by units in the Rest of Central Region and Outside Central Region, whose prices rose 1.1 per cent and 0.5 per cent, respectively. However, prices of units in the Core Central Region declined 0.8 per cent from May, SRX Property said. 

On a year-on-year basis, however, resale prices were 1.6 per cent lower in June.

“With loan curbs and other restrictions, most of the transactions currently are within the S$1.5 million region. This explains the demand and consequent revival in non-prime and suburban property prices. The market is stabilising, led by more rational transactions,” said Mr Eugene Lim, key executive officer at ERA.

He estimated that resale volume should hit approximately 6,000 units for the whole of this year, a 20 per cent increase from last year.

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