Resale volume of non-landed homes drop 20% in Jan: SRX

The resale volume of non-landed private residential property in January dropped 20 per cent compared to December last year, according to the flash estimates provided by SRX property that were released today (Feb 11). An estimated 364 units were resold in January 2016 compared to 455 units in December 2015.

Resale volume was down 82.2 per cent compared to the peak in April 2010. However, on a year-on-year basis, January’s volume was up 3.7 per cent.

“Although resale volume decreased quite significantly from December numbers, it is still comparable to January 2015 figures,” said ERA Realty Network Key Executive Officer Eugene Lim. “Usually buying activity tends to be sluggish in the month before Chinese New Year, and will generally pick up momentum in the months after.”

The report also noted that resale prices in January dipped 1.7 per cent from January last year and prices are down 7.2 per cent from the recent peak in January 2014. However, compared to December 2015, January’s prices inched up 0.6 per cent.

Despite the 0.6 per cent price increase, Mr Lim said the overall trend for the year should still be downwards as the economy faces headwinds and the rental market continues to face downward pressure due to a supply and demand mismatch.

This is as the Singapore economy is restructuring to be less reliant on foreign manpower, he added.

As resale prices stabilise, ERA expects more buyers to turn to the resale market to purchase a private home, as fewer new private residential units are expected to be launched this year following the tapering of housing units released under the Government Land Sales programme, Mr Lim also said.

Homes in Kranji and Woodgrove went for S$24,000 more than estimated market value, while property in Balestier, Toa Payoh, Serangoon sold for $36,000 less than market value. Overall, people paid S$10,000 less than the estimated market value last month.

Source : Today – 11 Feb 2016

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