Private home resale prices down for second straight month

Resale prices of private homes slipped 0.4 per cent in June from May, the second straight month of declines.

In May, resale home prices edged 0.2 per cent lower from a month earlier.

The price dip in June was largely due to price falls in the central region and small units, according to the latest Singapore Residential Price Index (SRPI) flash estimates published by the National University of Singapore’s Institute of Real Estate Studies on Monday.

Prices of private homes within the central region fell by 1.5 per cent in June, reversing the gains it recorded in May.

Meanwhile the price of small units, defined as 506 square feet or less, continued their month-on-month decline, falling 1 per cent in June, after May’s 1.3 per cent decline.

In contrast, prices of resale homes in the non-central region rose 0.5 per cent, up from May’s 1.5 per cent drop.

Nicholas Mak, the executive director for research and consultancy at SLP International Property Consultants, noted that the price index for shoebox apartments peaked in April and was slowly retreating as investors grew more cautious about investment potential.

He also added that in the first half of 2013, the SRPI varied between a narrow range of 158.2 and 163.0, which suggested that private resale prices may be hitting a plateau.

Recent quarterly figures from the Urban Redevelopment Authority (URA) showed a slight increase in prices for private homes.

According to the URA, prices for private residential properties rose 1 per cent in the second quarter of 2013, higher than the previous quarter’s 0.6 per cent growth.

Source : Channel NewsAsia – 29 July 2013

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