January resale price index dips 0.2%: SRX

By The Folks @PropTalk - February 11, 2015 No Comments

The resale market for non-landed private homes continued to languish in January, SRX Property's latest flash estimates released on Tuesday show.

Its overall resale price index for non-landed private homes continued to slip month on month in January. The overall median transaction over X-value (TOX) remained at negative $10,000. Resale volumes also hovered around the 300-plus level for the third consecutive month.

But market watchers expect resale volumes to pick up after February.

SRX Property's overall resale price index for non-landed homes dipped 0.2% month on month in January. Year on year, the index eased 6.5%.

The flash estimates showed resale prices of non-landed private homes in Core Central Region and Outside Central Region posting 1.7% and 1.1% month-on-month declines respectively. However, prices in city-fringe locations, or Rest of Central Region, rose 1.5%.

R'ST Research director Ong Kah Seng forecasts resale prices of non-landed private homes to ease by up to 7% this year, assuming none of the cooling measures are removed in the second half. Any scale-back of cooling measures in H2 2015 would not result in a rapid rise in resale private home prices. Investors understand that there is a substantial amount of private home completions that will intensify competition for tenants."

Based on URA data, 19,941 private homes (both landed and non-landed) received TOP last year, up 51.6% from 13,150 units in 2013.

The vacancy rate for non-landed private homes climbed to 9.1% as at end-Q4 2014 from 7.1% a year earlier.

Private home completions this year are forecast to rise to 21,359 units, followed by a further 20,919 units in 2016 - based on information provided by developers to the URA.

Nicholas Mak, executive director of SLP International, predicts that total resale volumes for private homes (both landed and non-landed) could stage a modest recovery this year to around 5,200 - 7,000 units - up from 4,860 units last year. "Some bargain-hunting investors and home buyers could be attracted to the secondary property market as the resale property prices continue to remain soft... The real recovery will occur only after a major relaxation of the existing property curbs."
Info source: BT

We can almost hear the Weather Girls singing "It's raining condo, hallelujah..."









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