Condo resale prices fall to lowest since 2012 | Singapore Property
By Lee Meixianleemx@sph.com.sg@LeeMeixianBT
Non-landed private residential resale prices fell 0.9 per cent in September to the lowest level in four years since July 2012, while volume slumped 17.7 per cent.
PHOTO: ST FILE
Oct 12, 20165:50 AM
NON-LANDED private residential resale prices fell 0.9 per cent in September to the lowest level in four years since July 2012, while volume slumped 17.7 per cent.
According to data compiled by SRX Property, an estimated 683 private condominium and apartment units were resold in September, compared to 830 units resold in August.
R'ST Research director Ong Kah Seng said: "The price fall from July to September confirms that resale properties are still facing headwinds due to substantial new residential completions since 2014, and the total debt servicing ratio framework constraining large property loans."
By region, the city fringe (Rest of Central Region) and suburbs (Outside Central Region) recorded a price drop of 1.3 per cent and 1.5 per cent respectively. In contrast, the city centre (Core Central Region) recorded a price increase of 0.6 per cent.
Year on year, prices in September 2016 fell 1.5 per cent from September 2015. September 2016 prices were also down by 8.5 per cent from the recent peak in January 2014.
On the transaction front, resale volume in September 2016 was 45.9 per cent higher compared to 468 units resold a year ago. But compared to its peak of 2,050 units resold in April 2010, resale volume was down by 66.7 per cent.
SRX Property's data culminates in a cumulative 1.1 per cent price decline in the third quarter approximately, compared to Q2. Earlier this month, official Urban Redevelopment Authority (URA) flash estimates showed a steeper-than-expected 1.5 per cent drop in Singapore's private home prices in the third quarter, which surprised analysts who were expecting the market to have stabilised following several quarters of mild price declines.
Most agreed that buying sentiment took a turn for the worse with the poorer economic showing and fears of an approaching recession. On Monday, trade minister Lim Hng Kiang told Parliament that the government does not project an outright recession, but the economy may experience some quarters of negative growth on a quarter-on-quarter basis.
SRX, in pointing out the differences between its price index and URA's, said on Tuesday that its index includes more transactions done in September than URA's flash estimate, which only collected transaction prices until mid-Sept. URA's index also covers landed properties and developer sales, while SRX's index only covers resale non-landed home prices.