Resale prices in March fell 2%

By The Folks @PropTalk - April 11, 2013 7 Comments

Prices in the resale private property market fell just two per cent in March compared to February, according to data from major property agencies compiled by the Singapore Real Estate Exchange (SRX).
But resale volumes in March jumped 87% from February.
The drop in resale private home prices was led by those in the suburbs, where resale prices fetched $1,071psf, 3% lower than in February. Non-landed private homes in the city area were resold at an average of $1,788psf or two per cent lower than the previous month. Prices of those in the city fringes remained unchanged at $1,301psf.

Analysts Channel NewsAsia spoke to said the marginal movements in property prices are the intentions of the latest cooling measures, where the additional buyers' stamp duty was raised by between five and seven percentage points across the board from January 12.
ERA's key executive officer, Eugene Lim, said: "What is holding back buying decision is perhaps a mismatch of expectations, especially in the resale market. There is not much compelling reason for sellers to drop prices. Why? Because we are still having economic growth, full employment; holding cost is cheap. But on the other hand we have buyers who are expecting a big cut in prices because of the cooling measures. It is a normal market response."

In March, 609 resale private home transactions were recorded - some 87% higher than in February. This was due to fewer resale transactions in February over the Lunar New Year holidays.
But the number of resale transactions in March is just half that of the same period last year. OrangeTee's CEO, Steven Tan, said: "If this trend continues and coupled with the large supply of completed projects in the next few months, the resale prices will face more pressure. The performance of the resale market will depend on the primary market in the next few months. If prices continue to go up, it will make some buyers change their minds to switch over to resale market."
On a quarterly basis, 1,982 resale units were transacted in the first quarter of 2013, compared to the 2,074 units moved in the first quarter of last year. But volumes in the first quarter were down 39% from the fourth quarter last year.

Meanwhile, overall rental prices for non-landed private homes in March remained largely unchanged from February.

Experts say they will be keeping a close watch on the market in the second quarter, when sales are typically more brisk as launches pick up.

Over in the market for new private home launches, incentives offered by developers to offset the impact of the cooling measures appeared to have met with some success.
DWG estimates that developers moved some 5,000 homes in the first quarter of this year. That's some 12.5% more new homes compared with the fourth quarter of 2012.
Source: Channel News Asia

And speaking of rental, the wife and I have heard from various sources (both investors and agents) that the market is definitely softening. Apartments in the city area that were commanding $15k a month in rental just last year are now asking for between $10 - 12k, while those in D21 are now asking for $4 - 4.5k, down from the previous $5k. With the slew of new developments coming on stream this and next year and the tightening of foreign labor coming into Singapore, we foresee continual black clouds hovering over the rental market.

7 comments to ''Resale prices in March fell 2% "

  1. But the rentals at Carribean are hardening.

    2 BR one year back was $4500 approx. Now as at April 2013 (URA )at about $5500 approx.

    Can we conclude those upper.mass.mkt-mid.range property rentals may be hardening.

  2. I agree to the Real fact that the condo rental and selling prices are dropping but very steadily. A good some of units are left vacant for more than 5 months in the out skirts. Gradually the trends are coming is over....

  3. The Folks @PropTalkApril 12, 2013 at 9:14 AM

    Hi Anonymous (11/4/13, 8:35AM):

    The wife and I looked through the URA data for rental contracts for private residential properties and found that the $4500 you mentioned is not so much the average rental for a 2BR at Carribean one year back, but rather the lower range for that unit type. And compare this with the rental contracts lodged in Feb 2013 this year, we have not seen any significant increase. This may be an indication that certain developments do hold their rentals better than the average market, but we wouldn't go as far to say that "upper mass mkt-mid range property rentals may be hardening".

    Also strange that you mentioned April 2013 (URA) rental for Carribean at about $5500 - the data that we managed to obtain from teh URA website is only up till Feb 2013. It could be that you are a subscriber to URA Realis, but we were under the impression that even Realis is not up-to-date to the current month. Then again, we may be wrong...

  4. Duhno but as we go a property hunting, all two bedders rented out at 4500, 4600, 4800 and three bedders rented out at 550, 5800, 600 with leases expiring March 2013, April 2013...maybee agents didnt buzz us to the high value premium units with high tenancy

  5. 5500, 5800 and 6000. sorry. also i read somewhere that when expats come for summer holidays to recce SG to sell their talents here, high value rents can be secured in months of July, August etc.

  6. Expats inflow for work is not same as 3 months ago...accepting the fact the rental/sales market is weakening...anticipate 10 - 20% weakened throughout 2013.

  7. Rental Pressure will build up in 2015 with influx of supply from both private and public housing.