Private home resale prices stayed flat in July: SRPI

By The Folks @PropTalk - August 29, 2015 No Comments

Resale prices of completed non-landed private homes were unchanged in July from the previous month, the Singapore Residential Price Index (SRPI) flash estimates released on Aug 28 showed, with gains in the central region offsetting the declines in the non-central areas.

The SRPI, compiled by the National University of Singapore’s Institute of Real Estate Studies, showed overall prices stabilised last month after the revised 0.1% drop in the previous month.

Prices of completed private apartments have fallen about 1.7% in the first six months of this year. The decline follows falls of 3.7% and 1.3% in the first and second halves of 2014 respectively.

Prices of homes in the central region, excluding small units, rose 0.2% to extend June’s 0.6% rise. Prices for these units have fallen the furthest so far at 4.2% from a year back and down an estimated 12.3% from their peak in May 2013.

Home prices in the non-central region eased a further 0.2% following the 0.7% decline previously. They are down 1.9% year on year and have fallen an estimated 8.6% from their peak in April 2013.

Prices of small units — those with a floor area of 506sqft and below — rose 0.3%, reversing from the 0.9% decline a month earlier, the data showed. They are down 2.9% year on year and have fallen about 9.5% from an August 2013 peak.

Even as cooling measures and loan curbs continue to weigh across the entire housing market, the resale sector is facing more competition for the buyer’s dollar as developers are making their new launches more affordable.

Sales of new private homes last month jumped to the highest level since the Total Debt Servicing Ratio came into effect two years ago, largely due to the launch of High Park Residences in Sengkang, where 1,169 of the 1,186 units offered were snapped up. The median launch price of $989psf – below the $1,000psf psychological threshold – was a key factor in its strong sales, analysts said.

In all, developers sold 1,594 private residential units last month, more than four times the 375 units sold in June and thrice the 511 units offloaded in July last year, Urban Redevelopment Authority data showed.

Analysts are expecting resale private property prices to decline by 3 to 4% for the full year, given looming new supply.

A total of 21,563 private homes are scheduled to be completed this year, up from 19,941 last year. A further 21,043 are expected to be completed next year.

About 96% of the supply this year and the next are non-landed homes.
Source: TODAY, ST

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