SINGAPORE — Resale prices of non-landed private homes rose 0.6 per cent last month from October, the latest flash estimates from SRX Property showed today (Dec 8), but analysts attributed the rise to month-to-month fluctuations and said it was not strong enough to signal a market recovery. Executive condo may be sold upon the fulfilment of MOP. This applies to executive condo such as The Terrace EC , The Brownstone EC, Signature EC At Yishun and upcoming ones such as Wandervale EC and Parc Life EC.
“Though there is an overall 0.6 per cent increase in overall private property prices, the main contributors are property transactions for prime and city fringe properties,” said Mr Eugene Lim, key executive officer at property agency ERA. “We do not see this as a sign of rebound, but rather, as monthly price fluctuations based on what has been transacted for the particular month. For reference, property prices decreased by 0.6 per cent in October compared to September.”
Prices in the Core Central Region, or city centre, jumped by 3 per cent from the previous month, while those in the Rest of Central Region, or city fringes, rose by 1.3 per cent. Prices in the Outside Central Region, or suburbs, slipped 0.8 per cent, the SRX data showed.
On a year-on-year basis, overall prices were 1.3 per cent lower last month. Looking ahead, analysts said home prices would continue to be weighed down by a large wave of supply and property cooling measures.
“Overall, the private residential property market is still facing headwinds caused by piling unsold inventory coupled with a slowdown in demand due to stricter lending rules and the Additional Buyer’s Stamp Duty,” said Mr Lim, who projected an overall price decline this year of about 2.5 per cent.
The downward trend is expected to continue next year, said Mr Lim, due to the large number of home completions and as policy measures continue to curb buying interest.
Last month, the number of resale transactions fell 2.8 per cent from 502 units in October to 488 units, according to the SRX data, but analysts shrugged off the statistic.
“The slight dip cannot lead to the conclusion that transaction volume fell … the SRX estimated data is not conclusive data,” said Mr Ku Swee Yong, chief executive of property firm Century 21.
“Also, for October there were 31 calendar days and for November there were 30 calendar days. The close to 3 per cent drop can be attributable to transaction volume for a day.”
On a year-on-year basis, volume transaction was 31.2 per cent higher than the 372 units resold in November 2014, reflecting an increase in buyers looking to the resale market.
“Increasingly, we have observed that a greater proportion of buyers are turning to the resale market when looking to purchase a home for owner-occupation,” explained Mr Lim. “Their reasons for doing so include lower prices and higher bargaining power, among others.” Resale units are also attractive because they tend to be larger than units launched by developers these days, he noted.
Overall, Mr Lim expects to see about 6,000 resale units changing hands this year, an increase of about 20 per cent from last year. “Building on this momentum, we should see a better 2016 in terms of transaction volume as the market continues to act rationally,” he said.