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SINGAPORE — Resale prices of non-landed private homes fell 0.8 per cent last month from November, flash estimates from SRX Property showed yesterday, with analysts expecting the general downtrend of prices to continue amid slow demand and rising interest rates.

The price decline reflects the current languid market sentiment and the sustained impact of the cooling measures,” PropNex Realty said, although it added that a rebound in the volume of transactions in December shows buyers are gaining confidence that prices are slowly bottoming out and so are more willing to enter the market.

Therefore, there should also be more activity on the resale front, as the number of new project launches are expected to be fewer, said Mr Lim. Upcoming executive condo include The Visionaire EC , Wandervale EC and Parc Life while existing ones include Terrace EC, Waterwoods EC, Signature EC at Yishun and Brownstone EC .

The overall price decline last year was also smaller at 2.1 per cent, compared with 4 per cent in 2014, property agency ERA said. “This should be some consolation to home owners,” said Mr Eugene Lim, ERA key executive officer. Prices in the Core Central Region, or city centre, were least affected, dropping 0.5 per cent, while those in the Rest of Central Region dipped 1.2 per cent, and those in the Outside Central Region fell by 0.7 per cent.

With the Government maintaining the cooling measures, PropNex expects private home prices to continue falling gently, with a 2 to 3 per cent decline this year.

However, it added, “the decline in prices will continue to spur buyers to pick up units, which may lead to an increase in volume of transaction”.

Last month, an estimated 519 non-landed resale units were sold, based on the SRX data, up 10 per cent from the 472 units resold in November 2015.

Year-on-year, resale volume was 44.2 per cent higher compared with the 360 units resold in December 2014, noted ERA, although transactions are still down 74.7 per cent from the peak of 2,050 units resold in April 2010.

“Considering the historical quiet December period, these figures look promising,” said Mr Lim. “We have more buyers turning to the resale market; especially for owner-occupier buyers who are looking for units with larger floor areas; as units launched by developers tend to be smaller.”

He added that motivated sellers in the resale market are usually more negotiable. “As such, there is a fair amount of bargain hunting among purchasers,” he said.

For the entire year, 6,364 units were resold, representing an almost 28 per cent increase compared with 2014.

Moving into 2016, the private residential market is still expected to face strong headwinds as the weakening economy and rising interest rates come into the picture, said the analysts.