Resale volume of private non-landed homes hits new high in March

SRX data shows resale volume of private non-landed homes has rebounded 82.6 per cent month-on-month in March, the highest resale volume since October 2013.

An estimated 451 resale transactions were registered in the month of March.

On a year-on-year basis, resale volume still posted a 22.5 per cent drop compared to 582 units resold in the same month of last year.

But resale prices remained flat.

Overall resale prices of non-landed private homes inched up by 0.2 per cent in March, following a 3.1 per cent drop in February.

On a regional basis, prices in Rest of Central Region (RCR) rose by 1.3 per cent, followed by a 0.3 per cent gain in the Core Central Region (CCR).

However, prices in Outside Central Region (OCR) continued to soften by 0.1 per cent.

Rental volume for non-landed homes rose 7.4 per cent year-on-year.

According to transaction data from SRX member companies, an estimated 3,087 units were rented in March, up 27.8 per cent from February’s 2,416 rental transactions.

On a year-on-year basis, rental volume also improved by 7.4 per cent from the 2,875 rental contracts signed in last year’s March.

Rental prices in March fell 0.9 per cent to reach a 27-month low since December 2011.

Based on the non-landed private residential rental SPI sub-index, overall rental prices in March saw a further drop of 0.9 per cent, after the same amount of weakening was seen in February.

Compared to the peak rental price observed in January 2013, rents had since come down by 5.7 per cent.

SRX said all three regions saw sustained dives in rental prices in March.

RCR’s rents declined 1.4 per cent.

Rents in the CCR and OCR regions dropped by 0.6 per cent and 0.7 per cent respectively.

Rental prices continue to decline with record supply.

This year, more than 17,000 private residential units are expected to be completed — the highest since URA records began in 1996, and 75 per cent higher than the long term average in the last 18 years.

And for the first time, SRX has published a forward indicator for the private resale market – following the introduction of Transaction over X-value (TOX) in the HDB resale market.

SRX said the median Transaction over X-value (TOX) for non-landed homes continued to fluctuate in the negative region, ending at S$13,112 in March.

Source : Channel NewsAsia – 9 Apr 2014

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