Friday, June 7, 2013

Private resale dips in May!

Prices of resale private homes softened in May as the government's cooling measures continued to dampen the market.

Non-landed private residential units showed an overall price drop of 0.5% in May compared to April, according to data from major property agencies compiled by the Singapore Real Estate Exchange (SRX).

Prices of resale non-landed private homes in the city area dropped 0.5% over the previous month while those in the city fringes declined 0.4%.

However, prices of resale suburban private homes remained resilient, reporting a 0.3% increase.

The SRX projected the final volume figure in May to be around 750 units, which would exceed the 671 units sold in April. This would still represent a 40% drop from the same period last year. There were 1,292 non-landed resale cases in May 2012.

Orange Tee's Head of Research & Consultancy Christine Li said the stand-off in the resale market could be due to the mismatch in expectations between buyers and sellers, who are still reluctant to reduce asking prices amid record property prices.

As a result, buyers prefer to buy directly from developers who are offering discounts and incentives.

Meanwhile, overall rental prices for non-landed private residential in May slipped 0.6% from April, marking a fourth consecutive monthly drop in overall rents.

Ms Li expects rentals to slide further in the upcoming months, given the strong pipeline of new private homes slated for completion this year.
Source: Channel News Asia

First it was sub-sale, now both resale and rental continue to soften. Are we finally heading down the "cannot sell cannot rent" road..?


Amie said...

I'm still waiting. I hope my wait will be worthwhile. thanks for this update.

Anonymous said...

Is Jurong Gateway condo worthy to buy for investment?

Enkizen Your Singapore & US Property Consultant said...

Great Blog. Jurong Biz Hub has potential to push Jurong Gateway Condo prices as it is the first mixed-use condo to be launched in the MRT vicinity. There is bright room for capital gain and rental opportunities there.

However, one should worry about the economy outlook as interest's rate will climb back as the apartment gets TOP as the full loan sum will hit the buyer, together with the increased interest rate.

Great Blog Btw. Correction may come then. From my analysis, it will be 2016. Perhaps the blog author can talk about more about that too.

This is a dangerous time. Buy within your means.
I also help Singaporeans, make their first step in investing in the volatile US market.

Anonymous said...

Very very few transactions during 1st Half of July...Loan curb really works....Thanks to MAS.

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