Secondhand condo price ranges fall for slower schedule in 2015

Resale price ranges of non-landed private homes shed zero. 8 % in November 2015 in the previous month, based on SRX Property’s thumb estimates produced on Tues.

This clashes with a zero. 6 % month-on-month gain in Late.

For the whole of last year, the index fallen 2 . one particular per cent; the following pace of decline was about half the 4 % slide witnessed in 2014.

The index effectiveness last year was dragged by suburbs as well as Outside Central Region (OCR) – everywhere prices eased at a good steeper schedule of 5. 1 % compared with 3 of the. 3 % drop on 2014.

Conversely, the price craze reversed inside Core Central Region (CCR) and the location fringe as well as Rest of Central Region, leaving a comment gains on 2015 immediately after easing on 2014.

SRX’s index pertaining to CCR loved 2 . couple of per cent not too long ago after retreating 8 % in 2014. In RCR, the index chart advanced 1 ) 5 % in 2015 following a drop of 5. 8 % in 2014.

Based on the November 2015 thumb estimate, the actual price index chart for second-hand prices of non-landed non-public homes was down six. 8 % from the recently available peak on January 2014.

SRX Residence estimated the fact that 519 non-landed private homes were flipped last month — 10 % higher than the 472 sections resold on November 2015 and a good 44. couple of per cent year-on- year get from the fish hunter 360 units flipped in November 2014.

Second-hand volume was down by means of 74. six per cent from peak of two, 050 sections resold on April 2010.

ERA Real estate key account manager officer Eugene Lim set off that depending on the SRX results, the full-year 2015 financial transaction volume was 6, 364 units — up just about 28 % from 2014.

“We recognize more potential buyers turning to the resale sector for their purchases – especially for owner-occupier buyers who are looking for units with larger floor areas, as units launched by developers tend to be smaller.

“Moreover, motivated sellers in the resale market are generally more negotiable – resulting in a fair amount of bargain hunting among resale buyers, ” he added.

This year, Mr Lim expects more activity in the resale market for non-landed private homes – as developers are expected to launch fewer new projects.

Offering a different perspective, another analyst expects buying behaviour to remain sluggish for completed condos in the suburbs in 2016. This is because HDB upgraders who are looking to purchase a private condo are typically very location-specific.

On the price front, he predicts a drop of about 3 per cent this year in overall resale prices of non-landed private homes. The decline will be more pronounced at about 4 to 5 per cent in the OCR due to substantial number of private condos completing in suburban areas. In RCR, completed condos are expected to see fairly resilient, flattish pricing this year, while in the CCR, we could see a price decline of about 3 per cent, he added.

Another consultant noted that with loan curbs still in place, buyers are very price and quantum-sensitive and would only transact if they perceive a good deal on the market.

High volumes of completions this year will continue to dampen rents and weigh straight down prices. Banks of ability are expected looking.

Mr Lim of YEARS envisages the fact that “the individual housing market continues to expected to experience stronger headwinds as the weakening Singapore economy and rising percentage of interest come into the picture”.

SRX Property reported the overall mean transaction through X-Value (TOX) fell to negative S$5, 000 a few weeks back from 0 % in December. The mean TOX methods how much persons are overpaying as well as underpaying with the computer-generated calculated market value and also the so-called X-Value.

Giving his take on the following, Mr Lim said: “A difference of S$5, 000 is rather secundario and this is possibly the effect of your price settlements ending during the buyer’s give preference to. It is even now a fair signal that most real estate are sold for prices which have been supported by appraisal. “