Resale prices of private homes slip in September

Resale prices of private homes slipped 1.6 per cent in September from August as recent loan curbs took its toll on the market.

This follows a 0.5 per cent increase in the previous month.

According to data compiled by the Singapore Real Estate Exchange (SRX), the overall price decline last month was led by a 3.5 per cent drop in resale prices of private homes in the city fringes.

Mass market resale home prices also dipped 1.5 per cent.

In contrast, resale prices of homes in the city rebounded by 2.5 per cent after falling for two consecutive months in July and August.

About 462 non-landed homes were resold in September, up slightly from August’s 447 units.

This brought the total resale volume in the third quarter this year to 1,478 units, a 57 per cent drop compared to a year ago.

Meanwhile, overall rental prices for non-landed private homes in September fell 1.1 per cent from August, registering the biggest monthly rental price drop since the start of this year.

As for the HDB resale market, the cash-over-valuation (COV) for HDB resale flats dropped by S$3,000 in September to reach S$15,000 – the lowest since Jul 2009, when the overall COV was S$10,000.

Despite the drop in COV, SRX said overall HDB resale prices remained relatively flat with a small increase of 0.2 per cent from August, after four consecutive drops in the preceding months.

An estimated 1,164 HDB flats were sold in the resale market in September, slightly less than the 1,193 flats transacted in August.

This brought the resale volume for HDB flats in the third quarter to 3,661 units, a 33 per cent drop compared to last year.

Source : Channel NewsAsia – 10 Oct 2013