Resale prices for non-landed private homes remain flat in May 2015: SRX

Prices of non-landed private homes remained flat in May 2015 as compared to the previous month, according to flash estimates by SRX Property on Tuesday (Jun 9).

In individual sectors, the city fringe saw a resale price increase of 0.8 per cent, while resale prices in suburbs edged up by 0.3 per cent. Resale prices in the Core Central Region (CCR) decreased by 1.2 per cent, according to SRX’s report.

Meanwhile, the resale volume for non-landed private residential units increased by 33.1 per cent year-on-year.

A total of 543 non-landed private residential units were resold in May 2015, as compared to 408 units resold in May 2014. However, resale volume increased 4.2 per cent month-on-month in May – 521 units were resold in April this year.

Mr Alan Cheong, senior director of research and consultancy at Savills Singapore, explained: “We see that prices being stable, on top of that volume has picked up significantly, seems to suggest that buyers have given up the hope that they can get a even better deal or that the market will come off even more, and they are beginning to come back to the market.”

The overall median Transaction Over X-Value (T-O-X) remained at S$0 in May. The median T-O-X measures whether buyers are overpaying or underpaying the SRX Property X-Value estimated market value. The median T-O-X of S$0 means that an equal number of people paid above and below, or at the computer-generated market value for their properties.

Among districts which saw more than 10 resale transactions in May 2015, District 21 (Upper Bukit Timah, Ulu Pandan) had the highest median T-O-X of S$16,000. This means that majority of the buyers in District 21 purchased units above the computer-generated market value, SRX said.

The lowest median T-O-X recorded were in Districts 9 (Orchard, Cairnhill and River Valley) and 15 (Katong, Joo Chiat and Amber), among areas which saw more than 10 resale transactions. Both Districts 9 and 15 saw T-O-X of –S$20,000, meaning that majority of buyers in the districts purchased units below the computer-generated market value, SRX said.

Prices of private residential properties have been declining for the past 18 months, as at March this year, according to data published by the Urban and Redevelopment Authority.

Prices have also been on the downward trend in the HDB resale market since the beginning of last year.

The latest data follows another SRX report on Jun 4, which showed that prices of HDB resale flats also remained unchanged in May, from April.

Source : Channel NewsAsia – 9 Jun 2015

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