July resale prices slipped… yet again!

Resale prices of private homes slipped lower in July according to Singapore Residential Price Index (SRPI) estimates, which were released on Thursday (Aug 28).

The SRPI, compiled by the National University of Singapore’s Institute of Real Estate Studies, showed overall prices fell 0.3% in July from the previous month. In June, prices fell 0.5% from a month earlier.

Prices of small unit homes led the decline, with a 0.8% fall in July from the previous month. A small unit has a floor area of 506sqft or below.

Prices of homes in the central region, excluding small units, declined 0.7% on-month. However, home prices in the non-central region edged-up 0.1% in July from June. These figures exclude prices of small units in the non-central region.

Source: CNA

Despite the consecutive fall in resale prices for June and July, some may argue that the % drop were rather insignificant. While the wife and I cannot disagree with that one, we are always mindful of the Chinese saying “积少成多” – literally translated as “accumulation of little becomes a lot”.

Hot off CNA: Resale prices down 1% on-month in June 2014!

 

Resale prices of private homes fell in June after inching up in May, according to Singapore Residential Price Index (SRPI) estimates released on Tuesday (July 29).

 

The SRPI, compiled by the National University of Singapore’s Institute of Real Estate Studies, showed overall prices decreased by 1 per cent in June from the previous month. In May, prices rose 0.4% from April.

 

 

Prices of homes in the central region led the decline, with a 1.5% fall in June from the previous month. Prices in the non-central areas dipped 0.4%.

 

The figures exclude prices for small units with a floor area of 506sqft and below, which also fell 0.4% in June from May, the SPRI data showed.

 

Source: CNA

May 2014 resale up but prices continue to soften in 2Q2014!

Resale prices of private homes staged a surprise rebound in May over April, reversing a nine-month decline. However, experts have warned that investors remain wary, and the unexpected price rebound does not necessarily signal a sustained recovery.

Overall resale prices climbed 0.8% from April to May, according to Singapore Residential Price Index (SRPI) flash estimates out yesterday.

They had fallen 1% from March to April as new launches drew buyers from completed homes.

Consultants said that May’s price rise could have just been a blip, pointing out that the resale market largely remained stagnant. Resale prices are likely to have fallen or stayed flat from May to June.

SLP International research head Nicolas Mak noted that buyers could have gained confidence in the resale market in May due to relatively string sales of new homes that month.

Developers sold 1,470 new units, almost double the 749 moved in April.

 

The May resale prices increase contrast with that of the 2Q2014 price index for private homes, which continues to see a decline.

The price index for private homes fell 1.1% in the second quarter, the third continuous quarter of price decrease. This is according to flash estimates released by the Urban Redevelopment Authority (URA) today.

Prices of non-landed private residential properties in all market segments declined in the second quarter, the agency said. In the core central region, prices fell 1.5%, higher than the 1.1% decline in the previous quarter. Prices outside the central region decreased by 1.1%, higher than the 0.1%  decrease in the previous quarter. In the rest of the central region, prices fell 0.6%, compared with the 3.3% decline in the previous quarter.

Prices of landed properties fell 1.5%, higher than the 0.7% decline in the previous quarter, the URA said.

Sources: ST, CNA

And according to a report in BT today, the average transacted resale price of completed small units of up to 70sqm (753sqft) recorded a price increase of between 3.6 to 6.9% y-o-y across all three regions (i.e. Core Central Region, Rest of Central Region & Outside Central Region). Conversely, the resale price for big units (more than 70sqm) is down between 2.9 to 7.5% y-o-y across all regions.

Since the resale market typically takes its cue from the primary market, and with developers set to continue with their trend of building smaller-sized units in the face of TDSR, the logical conclusion is that resale price of small units may continue to fare better than those of  big units… a consideration that potential investors may want to keep in mind.

HOWEVER, the wife and I feel that there will still be good demand potential for big units. There is a limit on how many occupants can comfortably live in an apartment of up to 735sqft, even after taking into consideration the shrinking household size in Singapore. So despite the less than rosy picture seen year-on-year for big units, we expect prices of such to stabilize and eventually rise due to a smaller supply. When will that happen, you ask? Well…THAT is the million dollar question!

Private home resale up 0.1% in August

Prices of private resale homes rose just 0.1% in August from July — this is according to the latest Singapore Residential Price Index (SRPI), which tracks prices of completed private apartments and condominiums.

The SRPI data is published by the Institute of Real Estate Studies at National University of Singapore (NUS).

Resale prices of private homes in the central area saw the biggest decline, down 1.1% last month.

However, prices of units in the non-central region went up by 1.0%. The index covering small units of 506sqft and below also increased 1.0%.

Source: Channel News Asia

SRPI: Resale prices up 1.9% in April

Resale prices of private homes in Singapore rose at a faster rate of 1.9% in April, compared to the previous month’s 1.1% price increase.

The Singapore Residential Price Index (SRPI) flash estimates were published by the Institute of Real Estate Studies at the National University of Singapore on Tuesday.

The price increase was led by private homes outside the central region, which rose 2.4% in April, reversing the 0.2% drop in March.

Prices of small units, defined as 506sqft and below, also trended upwards from 0.8% in March to 1.8% last month.

Meanwhile, resale homes in the central region bucked the trend as price growth moderated.

The SRPI for homes in the central area rose 1.3% in April, down from the 2.8% increase seen in March.

Source: Channel News Asia

Resale home prices dropped 0.3% in Dec 2012!

Prices of private resale homes dropped 0.3% in December from November.

This is according to the latest Singapore Residential Price Index (SRPI), which tracks prices of completed private apartments and condominiums.

The SRPI data is published by the Institute of Real Estate Studies at National University of Singapore (NUS).

Analysts said the drop may be due to lower transactions during the school holidays in December.

They added that when volume is lower, prices tend to be flat or register a small decline.

Resale prices of private homes in the central area saw the biggest decline, down 1.3% last month.

But prices of units in the non-central region went up by 0.5%.

Meanwhile, the index covering small units of 506 square feet and below remained flat last month.

DWG Real Estate senior manager Lee Sze Teck said: “For January 2013, the prices for small units could see a rise because of the lower loan-to-value (LTV) ratio implemented on 12 January 2013.”

He added: “Buyers are likely to adjust their budget downwards because of the lower LTV ratio and look to buy smaller units.”

In contrast, data compiled by the Urban Redevelopment Authority showed private residential property prices grew 1.8% in the last quarter of 2012.

Mr Lee said that the difference between the two data “could be due to NUS revising their base to March 2009.”

Source: Channel News Asia

 

November private home prices up 1.9%!

Prices of completed private apartments and condominiums picked up pace in November, with those in the central region leading the gains.

According to the National University of Singapore (NUS) Singapore Residential Price Index (SRPI), prices of private non-landed homes climbed 1.9% in November.

This follows a 0.8 per cent increase in the previous month.

In particular, prices of private non-landed homes in the central area (excluding small units) advanced by 2.6% in November, compared with a 0.4% rise in October.

NUS’ Institute of Real Estate Studies, which published the SRPI flash estimates, said the sharp rise in prices of private non-landed homes (excluding small units) in the central area was driven by strong resale activity. Units in the central region made up about 35% of the total volume of transactions in October and November compared to 25% in January .

Associate Professor Lum Sau Kim of the NUS Institute of Real Estate Studies added that the housing market is still enjoying “favourable demand conditions with low nominal interest rates and low unemployment”.

Meanwhile, prices of resale private homes in the non-central regions (excluding small units) edged up 1.3%, compared to a 1.2% increase a month earlier.

Prices for small units with a floor area of 506sqft or below rose 1.7%.

HSR Property Consultants’ special advisor, Donald Han, said: “Developers launched less units for sale but instead focused on sales of existing projects that have been completed.

“For example, Reflections at Keppel Bay saw sales of six units in the month of November. The lack of new projects also caused investors to turn to the secondary market.”

He added that centrally-located projects have also been re-rated by investors, given that their price increases have lagged behind those in the suburban area.

Source: Channel News Asia

SRPI up 1% in August

Prices of resale private homes edged up 1 per cent in August, reversing a 0.6% drop in July.

This is according to the Singapore Residential Price Index (SRPI) flash estimates published by the Institute of Real Estate Studies at National University of Singapore.

The August statistics show that resale private property prices across the island continued to advance in August over the previous month.

In particular, the prices of private homes in the non-central region increased 1.5%, compared to a 0.6% decline in July.

Nicholas Mak, executive director at SLP International Property Consultants, said the growth momentum in the prices of non-central private homes has been the steadiest.

While the sector reported price declines in a few months over the past year, he said overall prices of private homes in the non-central area increased by 4.5% year-on-year .

Meanwhile, prices of homes in the central area climbed 0.5%, recovering from a 0.5% dip over the previous month.

Small apartments with a floor space of 506 square feet and below continued to see prices increase by 0.8% in August.

On a year-on-year basis, Mr Mak added that prices of units in the central area dipped 1.5%, while the overall price of small apartments dropped 1.0%.

Source: Channel News Asia

Sorry but we will not be publishing the full report from The Straits or Business Times. Not that we wouldn’t … but couldn’t. Have a good weekend!

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May SRPI: A tale of two newspapers…

It was a rather interesting contrast we found today while reading separate reports about the May SRPI: The Straits Times has painted a rosy picture by reporting that prices of shoebox units (500sqft or smaller) have moved up by 0.9% in May after dipping 0.8% the month before. But things aren’t as perky with The Business Times, which reported that the sub-index for small units (up to 506sqft) islandwide has dipped 0.1% between December last year and May this year.

Maybe shoebox buyers are just more adverse to apartments between 500 to 506sqft you think…?!

BUT SERIOUSLY, the wife and I wonder if the price dip for shoebox/small units will continue to exacerbate as more and more such unit surfaces onto the market….

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So how did the resale market do in Feb 2012?

Prices of resale private homes are 0.8% cheaper in February than in the previous month.
This is according to the NUS Singapore Residential Price Index (SRPI ).

Still, analysts expect overall prices to rise by between 0.5 and 3% in the first quarter.

Since January, the market for new private homes have been abuzz, with eight in 10 buyers being locals.

In December last year, the government introduced cooling measures like the Additional Buyer’s Stamp Duty (ABSD).

Back then, many had predicted property prices to go down by as much as 15%.

ERA key executive officer Eugene Lim said: “The measures are working in the sense that foreigners… [during the] pre-ABSD days make up almost 20% of the market. Today, they account for less than 7%of transactions, as far as new home sales are concerned.”

Excluding executive condominiums, nearly 2,413 new private homes were sold in February, more than a third from January’s.

But in the secondary market, where it includes the resale market and the more speculative resale of uncompleted private units, it is a quieter affair.

While private new home sales have spiked up in the last two months, experts noted the resale and sub-sale markets have been slow, and that should stablise the property price index in the first quarter of this year.

Jones Lang LaSalle research head Chua Yang Liang said: “In the first, second quarter, we are going to continue to see that kind of disparate, two-market behaviour, top and new sales and resale.

“New sale markets tend to… do better because of the conditions in there — the financing and progressive payments”.

“You don’t really need to make immediate payment, except according to the construction phase. Interest rates remain fairly low for now, and that is going to be more helpful for both markets”.

OrangeTee research director Tan Kok Keong said: “We are likely to see more launches, as well as strong sales, unless there are instances of sharp economic shocks externally.

“In terms of pricing, I do think that developers are pricing it at lower end of market expectations, so I do think that prices will continue to climb, but on a moderate level, meaning you are looking at one to two per cent price increases, going forward, in the primary market.”

With more Government Land Sales sites being taken up by developers, the supply of new private homes should meet demand. And that is a major price stabiliser for many analysts.

Source: Channel News Asia

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