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Private resale home prices decline again

SINGAPORE — After a brief recovery in August, resale prices of non-landed private residential units dipped marginally by 0.3 per cent last month from the previous month because of healthy supply and the continuing impact of property cooling measures.

Private resale home prices decline again

Private property resale prices are expected to continue falling
for the rest of the year, say analysts.
TODAY File Photo

SINGAPORE — After a brief recovery in August, resale prices of non-landed private residential units dipped marginally by 0.3 per cent last month from the previous month because of healthy supply and the continuing impact of property cooling measures.

Resale transaction volume saw an upswing following the end of the Hungry Ghost Festival, but rental volumes continued to decline, a flash report released yesterday by the SRX Property showed.

Price performance across the regions was mixed. The overall decline last month was driven by a 2.1 per cent drop in prices in the Outside Central Region (OCR), that property analysts attributed to a greater supply of resale units in the area.

On the other hand, prices in the Core Central Region (CCR) and Rest of Central Region (RCR) gained 0.9 percent and 2.9 per cent, respectively.

Mr Nicholas Mak, executive director of Research and Consultancy at SLP International Property Consultants, said the rise in resale prices in these areas could be due to buyers checking out new launches.

“The new launches actually draw (buyers) in. Some of them may go to the show flats ... and those who do not buy may still be interested to buy, so they will look around the area and maybe find something they like,” he said, referring to resale units.

However, analysts said resale prices are expected to continue falling for the rest of the year, with Mr Eugene Lim, key executive officer of ERA, forecasting a 5 to 8 per cent fall for the whole of this year.

Resale prices have fallen by as much as 5.6 per cent since the recent peak in January, SRX Property noted.

Mr Chris Koh, director of Chris International, said: “Sellers who don’t need to sell are still holding the prices, but the ones who are more genuine in selling have become realistic.”

Resale volume rose 15.3 per cent to an estimated 468 units last month, from 406 in August.

Meanwhile, rental volume dropped 14 per cent to an estimated 3,171 units from 3,688 units over the same period. Rent prices fell marginally by 0.2 per cent, led by declines in the RCR and OCR.

Mr Lim said the newly completed projects are competing with existing older properties for a limited pool of tenants and this would continue to have an impact on the rental market.

“Going forward, ample housing stock and the slowdown in hiring of foreign manpower are expected to continue to weigh down on the rental market.”

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