Resale prices of non-landed private homes up 0.1% in Sept: SRX Property

Resale prices of non-landed private homes up 0.1% in Sept: SRX Property
Resale prices of non-landed private homes went up 0.1% in Sept, according to SRX Property on Tuesday (Oct 10). TODAY file photo
Published: 7:25 PM, October 10, 2017
Updated: 9:49 PM, October 10, 2017

SINGAPORE — Resale prices of non-landed private homes inched up 0.1 per cent last month from August, preliminary estimates from SRX Property showed on Tuesday (Oct 10) amid growing signs of optimism in the property market.

While the sales volume fell 10.9 per cent, from 1,304 units in August to 1,162 units in September, this was in line with the annual trend where some buyers avoided making transactions during the Hungry Ghost Month, which ended in mid-September.

Overall, experts said the transaction volume and prices were pointing up.

Compared to a year ago, resale prices of non-landed private homes in September were up by 4.3 per cent. Last month’s transaction volume for such units was also 64.8 per cent higher than the 705 units sold in September 2016.

“It appears that the improvement in the resale sales market took off in March about the time when sales of new launches started to do well,” said Mr Colin Tan, director of research and consultancy at Suntec Real Estate Consultants.

Mr Nicholas Mak, executive director and head of research and consultancy at integrated asset manager ZACD Group, said he expects the private residential resale volume for the whole of 2017 to increase to about 12,000 to 14,000 housing units. This represents a 52 to 77 per cent increase over the resale property volume in 2016.

This rise in transaction volume will in turn drive prices up further. “If transaction volume for the rest of 2017 continues to rise on a year-on-year basis, it’s likely that we will see an imminent recovery in residential prices,” said Mr Donald Han, managing director of Hospitality Strategies Asia Pacific.

For September, the price increase for non-landed private homes was led by transactions in the city fringes, where home prices rose 1.1 per cent, reversing from the 0.1 per cent decline in the previous month.

Prices in the city centre fell 0.1 per cent, reversing from the 0.6 per cent increase previously, while prices in the suburbs dipped 0.5 per cent, reversing from the 1.8 per cent gain previously.

Tuesday’s report by SRX — an information exchange formed by Singapore’s leading real estate agencies — came a week after flash estimates from the Urban Redevelopment Authority (URA) showed private home prices rising for the first time in nearly four years in the third quarter. Experts saw the development as a sign that the Singapore property market had turned the corner.

The URA’s private residential property price index rose 0.5 per cent in the July-to-September period from the previous quarter, reversing from the second quarter’s 0.1 per cent decline. The last time private home prices went up was in the third quarter of 2013.