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PR Newswire
29-05-2012, 07:25 AM
The Straits Times
May 29, 2012
Resale home prices inch up
Rise was buoyed by modest rebound in upscale homes in central region
By Amanda Tan
PRICES of private resale homes inched up again last month, buoyed by a modest rebound in upscale homes in the central region.
The 0.8 per cent rise across the resale or secondary market came despite a 1.2 per cent slide in the prices of shoebox units - homes of about 500 sq ft or smaller.
Resale prices of these tiny homes gained 2.7 per cent in March.
The wider resale market edged up 0.4 per cent that month.
The main reason for the slight rise across the market last month was a 1.6 per cent increase in the price of high-end resale units.
The prices of these homes rose just 0.1 per cent in March.
However, prices of resale homes outside the central area were flat last month, after rising 0.7 per cent the month before.
The latest 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 units and condominiums, excluding executive condos - a public-private housing hybrid.
Property consultant Ong Kah Seng said the marginal overall price rise was within expectations.
But even as sales activity and buyer interest for resale homes are 'fairly positive', they are not overwhelming, the director at R'ST Research said.
Mr Ong said that the jump in prices in the central region was also within expectations as the segment has seen 'more laggard recovery, and was considerably affected in the aftermath of the additional buyer's stamp duty'.
Mr Colin Tan, research head at Chesterton Suntec International, added that the rise could be due to a bullish April, when market sentiment was 'quite good', and a few projects were launched in prime areas.
But buyers in the non-central region appear to be price-cautious, especially since home prices - including those for resale units - are already high.
'Such buyers do not relent to price increases, taking into consideration the limited investment potential of such homes and abundant choices in new projects,' Mr Ong noted.
Looking ahead, he expects the private non-landed resale market to see sustained moderate activity, leading to slight price rises.
'(This) is backed by economic stabilisation and the increasing realisation that resale (homes) are cheaper alternatives,' he said.
Properties in the central region, especially those on the city fringes, are likely to keep attracting improved buying interest, given the minimal launches available.
However, even resale homes in areas that are not easily accessible could draw interest if the area is slated for rejuvenation or expecting new infrastructure, he said.
Referring to the figures of recent months, Mr Tan said prices are 'stabilising nicely, with a hint of a downward trend'.
tamanda@sph.com.sg
May 29, 2012
Resale home prices inch up
Rise was buoyed by modest rebound in upscale homes in central region
By Amanda Tan
PRICES of private resale homes inched up again last month, buoyed by a modest rebound in upscale homes in the central region.
The 0.8 per cent rise across the resale or secondary market came despite a 1.2 per cent slide in the prices of shoebox units - homes of about 500 sq ft or smaller.
Resale prices of these tiny homes gained 2.7 per cent in March.
The wider resale market edged up 0.4 per cent that month.
The main reason for the slight rise across the market last month was a 1.6 per cent increase in the price of high-end resale units.
The prices of these homes rose just 0.1 per cent in March.
However, prices of resale homes outside the central area were flat last month, after rising 0.7 per cent the month before.
The latest 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 units and condominiums, excluding executive condos - a public-private housing hybrid.
Property consultant Ong Kah Seng said the marginal overall price rise was within expectations.
But even as sales activity and buyer interest for resale homes are 'fairly positive', they are not overwhelming, the director at R'ST Research said.
Mr Ong said that the jump in prices in the central region was also within expectations as the segment has seen 'more laggard recovery, and was considerably affected in the aftermath of the additional buyer's stamp duty'.
Mr Colin Tan, research head at Chesterton Suntec International, added that the rise could be due to a bullish April, when market sentiment was 'quite good', and a few projects were launched in prime areas.
But buyers in the non-central region appear to be price-cautious, especially since home prices - including those for resale units - are already high.
'Such buyers do not relent to price increases, taking into consideration the limited investment potential of such homes and abundant choices in new projects,' Mr Ong noted.
Looking ahead, he expects the private non-landed resale market to see sustained moderate activity, leading to slight price rises.
'(This) is backed by economic stabilisation and the increasing realisation that resale (homes) are cheaper alternatives,' he said.
Properties in the central region, especially those on the city fringes, are likely to keep attracting improved buying interest, given the minimal launches available.
However, even resale homes in areas that are not easily accessible could draw interest if the area is slated for rejuvenation or expecting new infrastructure, he said.
Referring to the figures of recent months, Mr Tan said prices are 'stabilising nicely, with a hint of a downward trend'.
tamanda@sph.com.sg
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