31-01-2012, 07:45 AM
The Straits Times
Jan 31, 2012
Fall in resale prices of homes in Dec
But too soon to be certain of downward trend, say experts
By Cheryl Lim
MORE signs are emerging of a slowdown in the residential property sector, this time with a fall in resale prices of homes sold last month - though experts say it is too soon to be certain of a trend.
This was the first drop since September last year, according to the new Singapore Residential Price Index (SRPI) flash figures released yesterday.
The index showed prices overall falling 0.8 per cent - their biggest dip since July last year - after a modest increase of 1.4 per cent in November.
Prices of central and non-central homes were down 0.4 per cent and 1 per cent respectively. However, shoebox units - homes sized below 506 sq ft - achieved a price increase of 3.4 per cent.
The SRPI is compiled by the National University of Singapore's Institute of Real Estate Studies and measures a basket of completed private apartments and condominiums, excluding executive condos.
Last week, fourth-quarter data from the Urban Redevelopment Authority showed the first slide in prices for a housing segment since the second quarter of 2009, with prices of semi-detached homes having dipped 0.6 per cent.
The Government has been cranking up anti- speculative measures to cool the red-hot property market, most recently last month, when it introduced an additional buyer's stamp duty.
Mr Colin Tan, head of research at Chesterton Suntec International, said it is too soon to tell if these drops are a sign the market is slowing down, and the index would need to display another month of price falls before any significant conclusion could be made.
'We did expect some knee-jerk reaction in the market to the measures. There have been other occasions when the index has come down,' he said.
Other experts attributed the fall in prices to a shift in demand. Dr Chua Yang Liang, head of research at Jones Lang LaSalle, said: 'It has also got to do with the 'wait-and-see' effect. Many buyers and sellers want to see how the market responds before plunging in to their next property purchase.'
But he said it boils down to a question of affordability. In recent months,high-end homes have been met with waning interest owing to global economic uncertainty, and the same might now apply to mass-market homes, he said.
Even though the index for small units bucked the trend this month, analysts note that last month's smaller number of transactions coupled with the recent volatility in the small-unit index could account for the significant resale price rise in shoebox units.
But property consultants say it is hard to predict if the overall downward price trend will persist throughout the next few months.
Judging by what is happening in the new sales segment, Dr Chua is not expecting to see any major downside for the resale sector. He anticipates prices will remain stable or soften further.
Mr Nicholas Mak, SLP International executive director of research and consultancy, said any future resale price changes will depend on microeconomic factors, the dynamics of the property market. 'The supply of completed homes will also play a part. Buyers may have more choices, and we may see the market gradually turning into a buyers' market.'
cherlim@sph.com.sg
Jan 31, 2012
Fall in resale prices of homes in Dec
But too soon to be certain of downward trend, say experts
By Cheryl Lim
MORE signs are emerging of a slowdown in the residential property sector, this time with a fall in resale prices of homes sold last month - though experts say it is too soon to be certain of a trend.
This was the first drop since September last year, according to the new Singapore Residential Price Index (SRPI) flash figures released yesterday.
The index showed prices overall falling 0.8 per cent - their biggest dip since July last year - after a modest increase of 1.4 per cent in November.
Prices of central and non-central homes were down 0.4 per cent and 1 per cent respectively. However, shoebox units - homes sized below 506 sq ft - achieved a price increase of 3.4 per cent.
The SRPI is compiled by the National University of Singapore's Institute of Real Estate Studies and measures a basket of completed private apartments and condominiums, excluding executive condos.
Last week, fourth-quarter data from the Urban Redevelopment Authority showed the first slide in prices for a housing segment since the second quarter of 2009, with prices of semi-detached homes having dipped 0.6 per cent.
The Government has been cranking up anti- speculative measures to cool the red-hot property market, most recently last month, when it introduced an additional buyer's stamp duty.
Mr Colin Tan, head of research at Chesterton Suntec International, said it is too soon to tell if these drops are a sign the market is slowing down, and the index would need to display another month of price falls before any significant conclusion could be made.
'We did expect some knee-jerk reaction in the market to the measures. There have been other occasions when the index has come down,' he said.
Other experts attributed the fall in prices to a shift in demand. Dr Chua Yang Liang, head of research at Jones Lang LaSalle, said: 'It has also got to do with the 'wait-and-see' effect. Many buyers and sellers want to see how the market responds before plunging in to their next property purchase.'
But he said it boils down to a question of affordability. In recent months,high-end homes have been met with waning interest owing to global economic uncertainty, and the same might now apply to mass-market homes, he said.
Even though the index for small units bucked the trend this month, analysts note that last month's smaller number of transactions coupled with the recent volatility in the small-unit index could account for the significant resale price rise in shoebox units.
But property consultants say it is hard to predict if the overall downward price trend will persist throughout the next few months.
Judging by what is happening in the new sales segment, Dr Chua is not expecting to see any major downside for the resale sector. He anticipates prices will remain stable or soften further.
Mr Nicholas Mak, SLP International executive director of research and consultancy, said any future resale price changes will depend on microeconomic factors, the dynamics of the property market. 'The supply of completed homes will also play a part. Buyers may have more choices, and we may see the market gradually turning into a buyers' market.'
cherlim@sph.com.sg