Homepage
PR Newswire
01-05-2012, 08:59 AM
The Straits Times
May 1, 2012
Rebound in private resale home prices
Overall prices in March up 0.8% after declining 1.6% in previous month
By Amanda Tan
PRIVATE resale home prices picked up in March, reversing a decline in the previous three months, amid some tentative signs of a property market revival.
Overall prices in March inched up by 0.8 per cent after declining 1.6 per cent the month before.
The prices of luxury resale units also rose by 0.8 per cent in March, which was a rebound from the 2 per cent decline in central home prices in February.
The starkest rise was a 2.8 per cent jump for shoebox units, those tiny homes of about 500 sq ft and smaller, while prices of homes outside the central area climbed 0.7 per cent.
In February, prices of shoebox apartments had fallen by 0.8 per cent.
The flash figures, released yesterday, came from the Singapore Residential Price Index compiled by the National University of Singapore's Institute of Real Estate Studies.
The monthly report measures a basket of non-landed completed private apartments and condominiums, though it does not include executive condos, which are a public-private housing hybrid.
R'ST Research director Ong Kah Seng said that the marginal price rises were 'within expectations', as the secondary market hums back to life with more sales.
'The revival in interest... was a case of pent-up demand where the stalemate between sellers and buyers eventually resulted in buyers relenting to slightly higher prices,' he said.
'Various home buyers who find developer sales too pricey for their budget, (such as) those who really appreciate larger family-size units... decided to buy a resale property after a futile wait for prices to drop,' he added.
Mr Lee Sze Teck, senior manager of research and consultancy at Dennis Wee Group, broadly agreed, attributing the pickup in resales to 'price resistance' in new launches, some of which have seen hefty per sq ft (psf) price tags recently.
For instance, the market has been abuzz over Sky Habitat, said to be the priciest suburban condo here.
Average prices range from $1,747 psf for a one-bedder to $1,642 psf for a four-bedder.
In the east, Katong Regency's units cost an average of $1,500 psf to $1,600 psf, a price that consultants suggest is 'on the high side'.
As for shoebox units, Mr Lee said that these have been gaining ground as a good investment avenue; and some buyers might prefer a resale unit that has a ready tenant.
Consultants like Mr Lee felt that buyers will continue to sniff out good deals in the resale market. But Mr Ong said this will not translate into notable price increases as buyers are unlikely to accept further price hikes.
'Buyers who were looking forth for price cuts... may be hesitant to commit should prices increase further, particularly if the resale property is generally old and in weaker conditions,' he said.
Mr Colin Tan, research head at Chesterton Suntec International, said the rise in resale prices indicates that market confidence has returned, amid somewhat easing worries of a global economic crisis.
But he warned that a return of confidence means buyers, with a clear horizon, need not hold back their purchases. 'It's worrying because you won't know how strong the price resumption will be.'
He said next month's indexes will offer telltale signs. 'If it's an affirmation again... that could prompt the authorities to look more closely and impose more cooling measures.
'I suspect prices will resume their climb.'
tamanda@sph.com.sg
May 1, 2012
Rebound in private resale home prices
Overall prices in March up 0.8% after declining 1.6% in previous month
By Amanda Tan
PRIVATE resale home prices picked up in March, reversing a decline in the previous three months, amid some tentative signs of a property market revival.
Overall prices in March inched up by 0.8 per cent after declining 1.6 per cent the month before.
The prices of luxury resale units also rose by 0.8 per cent in March, which was a rebound from the 2 per cent decline in central home prices in February.
The starkest rise was a 2.8 per cent jump for shoebox units, those tiny homes of about 500 sq ft and smaller, while prices of homes outside the central area climbed 0.7 per cent.
In February, prices of shoebox apartments had fallen by 0.8 per cent.
The flash figures, released yesterday, came from the Singapore Residential Price Index compiled by the National University of Singapore's Institute of Real Estate Studies.
The monthly report measures a basket of non-landed completed private apartments and condominiums, though it does not include executive condos, which are a public-private housing hybrid.
R'ST Research director Ong Kah Seng said that the marginal price rises were 'within expectations', as the secondary market hums back to life with more sales.
'The revival in interest... was a case of pent-up demand where the stalemate between sellers and buyers eventually resulted in buyers relenting to slightly higher prices,' he said.
'Various home buyers who find developer sales too pricey for their budget, (such as) those who really appreciate larger family-size units... decided to buy a resale property after a futile wait for prices to drop,' he added.
Mr Lee Sze Teck, senior manager of research and consultancy at Dennis Wee Group, broadly agreed, attributing the pickup in resales to 'price resistance' in new launches, some of which have seen hefty per sq ft (psf) price tags recently.
For instance, the market has been abuzz over Sky Habitat, said to be the priciest suburban condo here.
Average prices range from $1,747 psf for a one-bedder to $1,642 psf for a four-bedder.
In the east, Katong Regency's units cost an average of $1,500 psf to $1,600 psf, a price that consultants suggest is 'on the high side'.
As for shoebox units, Mr Lee said that these have been gaining ground as a good investment avenue; and some buyers might prefer a resale unit that has a ready tenant.
Consultants like Mr Lee felt that buyers will continue to sniff out good deals in the resale market. But Mr Ong said this will not translate into notable price increases as buyers are unlikely to accept further price hikes.
'Buyers who were looking forth for price cuts... may be hesitant to commit should prices increase further, particularly if the resale property is generally old and in weaker conditions,' he said.
Mr Colin Tan, research head at Chesterton Suntec International, said the rise in resale prices indicates that market confidence has returned, amid somewhat easing worries of a global economic crisis.
But he warned that a return of confidence means buyers, with a clear horizon, need not hold back their purchases. 'It's worrying because you won't know how strong the price resumption will be.'
He said next month's indexes will offer telltale signs. 'If it's an affirmation again... that could prompt the authorities to look more closely and impose more cooling measures.
'I suspect prices will resume their climb.'
tamanda@sph.com.sg
My Value Investing Blog: http://sgmusicwhiz.blogspot.com/