Property news that you might have missed this week...

By The Folks @PropTalk - August 15, 2015 No Comments

This one's for those who might have been too busy to take stock of the private home-related news and data that have been released this week.

But in essence: Resale volume and prices have remained sluggish while the rental market would continue to worsen further. And to add salt to injury, SIBOR has started climbing again!

Private property resale volume up 33.4% year-on-year in July: SRX Property

The resale volume of non-landed private residential units was up 33.4% year-on-year in July, with an estimated 515 units resold, SRX Property said on Thursday (Aug 13).

However, compared to the previous month, resale volume was down 10.4% from the 575 units resold in June 2015.

Resale prices inched up 0.3% from June, driven by units in the Core Central Region and Outside of Central Region, which posted price increases of 1.7% and 1% respectively. In contrast, prices of units in the Rest of Central Region were down 2.2% from the previous month, SRX Property said.

Overall resale prices were down 0.9%, however, when compared on a year-on-year basis.

The median Transaction Over X-Value (TOX), which measures whether people are overpaying or underpaying SRX Property’s estimated market value, remained neutral.

For districts with more than 10 resale transactions, District 9 (Orchard, Cairnhill, River Valley) posted the highest median TOX of $37,000. The lowest median TOX was in District 15 (Katong, Joo Chiat, Amber Road) and District 21 (Upper Buit Timah, Ulu Pandan) at -$35,000.

TOX has remained neutral at zero for the past four months.

July private home rentals down: SRX Property

Rental prices in the non-landed private residential market fell 0.3% in July compared with the previous month, according to SRX Property.

Units in the Core Central Region saw a 0.4% decrease in rent, and those in the Rest of Central Region and Outside Central Region saw decreases of 0.2% and 0.3%, respectively.

On a year-on-year basis, rents in July were down 5.7%, and down 12.5% compared with its peak in January 2013.

Rental volume rose from June’s 3,866 units to an estimated 4,147 units in July, SRX Property said.

Looking ahead, market watchers expect the downward pressure on rents to continue as more homes are built, and as the Government tightens foreign labour policies.

About 11,600 private homes are expected to complete this year, while another 21,043 units will come on stream next year.

Earlier last month, the Manpower Ministry said work pass holders will need to earn a minimum fixed monthly salary of $5,000 to sponsor their spouse or children to stay in Singapore on the Dependant's Pass, up from the current $4,000.

The salary bar will also be higher for who want to bring their parents to Singapore on Long Term Visit Passes. It will be revised to $10,000 a month, up from $8,000. 

SIBOR climbs to four-month high

A key interest rate benchmark hit a four-month high on Thursday (Aug 13), as sentiment towards the Singapore dollar remain weak following the depreciation of the Chinese Yuan.

On Wednesday, the three-month Singapore Interbank Offered Rate (SIBOR) rose to 0.9345%. On Thursday, the rate climbed further to 0.9388%.

Property analysts said banks have not yet adjusted mortgage rates that are pegged to SIBOR, which are currently hovering around 1.5 to 1.7%. The rate is expected to rise to 2% by the end of this year.

The vacancy rate for residential properties is also expected to climb, following the tightening of the labour market and slowing down of the economy. Experts said some owners may be forced to sell their properties due to difficulties servicing their loans.

Source: CNA

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