Non-landed private home prices dip again

But new figures show significant rise in volume after Chinese New Year

Resale prices in the central region fell an estimated 0.3 per cent month on month, and 7 per cent from a year back. City 

fringe resale prices rose 0.4 per cent for the month. -- PHOTO: BLOOMBERG 

RESALE prices dipped again last month although volumes rose significantly after Chinese New Year, according to new figures.

Resale prices of condominiums and private apartments fell 0.2 per cent, on average, in March compared with February. They were down 3.9 per cent from March last year.

The flash estimates released by SRX Property yesterday also indicated that the month-on-month change in the price index for February has been revised from no change to a 0.4 per cent decrease.

Resale volumes rose 31 per cent month on month to an estimated 440 units for the month.

This could have been due to the fact that more properties were put up for sale after the Chinese New Year period, said R'ST Research director Ong Kah Seng.

Some projects marketed late last year may have taken a breather during the festive season.

Still, last month's volume was up an estimated 18.6 per cent from the same month last year.

Resale prices in the central region fell an estimated 0.3 per cent month on month, and 7 per cent from a year back.

Suburban resale prices fell about 0.4 per cent month on month, and 2.8 per cent for the year.

City fringe resale prices rose 0.4 per cent for the month, though this could be due to thin volumes and the types of properties transacted, said OrangeTee manager of research and consultancy Wong Xian Yang.

Resale prices for the region were down 1.4 per cent from a year back.

Overall, resale prices have fallen 6.2 per cent from the last peak in January last year.

ERA Realty key executive officer Eugene Lim said the gradual downward trend is likely to continue.

"While sellers have become more reasonable in their expectations, they are not under tremendous pressure to sell and are not prepared to consider ridiculously low offers from opportunistic buyers," he said.

Home loan interest rates may be on the rise, but the increase has been slight so far and has not been "unbearable" for property owners. But overly leveraged owners of multiple properties are beginning to feel the burden and may begin divesting their portfolios, he said.

Mr Wong added that the volatility of the overall SRX price index for resale properties has been narrowing over the past few months, which points to a stabilising market.

"New information has to come in, such as the tweaking of cooling measures or a higher than expected hike in interest rates, before we see any large price movements in the market."

The Straits Times / Money                                    Published on Wednesday, 15 April 2015

By Rennie Whang                                                wrennie@sph.com.sg

Non-landed private home prices dip again