Resale prices for non-landed private residences slid 1.1 per cent on-month in November, pushing it beneath the support level established since July 2014, the Singapore Real Estate Report (SRX) stated on Tuesday (Dec 9).
Based on year-on-year comparisons, the November prices dropped 3.4 per cent. Compared with the recent peak in January 2014, prices have declined 6.3 per cent, SRX said.
Resale prices of private homes in the Rest of Central Region and Outside of Central Region led the decline, with prices dropping 1.3 per cent in both these areas, while prices in the Core Central Region dipped 0.1 per cent.
LOW RESALE VOLUME MAKES MACRO-ANALYSIS LESS RELEVANT
The resale volume in November also dropped significantly by 22.4 per cent on-month. An estimated 388 units were resold last month, compared with the 500 transacted units in October, the report stated.
Resale volume was 6.6 per cent higher year-on-year, but it is down 81.1 per cent compared to its peak of 2,050 units transacted in April 2010, it added.
“When sales volume is this low, macro-analysis becomes less relevant and individual transactions are more pronounced,” said SRX Property CEO Sam Baker. “On the macro level, we can project, with reasonable certainty, that demand will continue to be anaemic and prices will be relatively stubborn until there is a significant change to cooling measures, interest rates, supply, an external shock or some combination of the above.
“Until then, the action is at the street level and requires micro-analysis. Fifty per cent of buyers in November paid above the X-Value for their unit and 50 per cent paid below it. This means that not all buyers and sellers are being impacted by the cooling measures in the same way,” Mr Baker said.
He added that more agents and clients are using data to transact the right home at the right price in their particular project or street.
TOX REACHED NEUTRAL
The overall median Transaction Over X-value (TOX), which measures whether people are overpaying or underpaying the SRX Property X-Value estimated market value, reached a neutral value in November – the first time a non-negative TOX is reported since October 2013.
For districts with more than 10 transactions in November, district 9 posted the highest median TOX of S$80,000, followed by district 22 (S$30,000) and district 11 (S$15,000).
Conversely, the lowest TOX was seen in district 5 with -S$40,000, followed by -S$20,000 in district 16 and -S$15,000 in district 19.
Source : Channel NewsAsia – 9 Dec 2014