Tuesday, January 12, 2016

Private home resale prices dropped in December: Property index

The price declines reflect the current languid market sentiment and the sustained impact of cooling measures, says SRX Property.

SINGAPORE: Prices of private homes in the Republic fell about 2 per cent in December 2015 from the previous year, according to flash estimates from SRX Property.

The overall price fall in 2015 was about 2.3 per cent, it added in a report released on Tuesday (Jan 12).

Between November and December 2015, non-landed private properties in Singapore suffered a 0.8 per cent drop in prices.

SRX Price Index for non-landed private resale properties. (Graph: SRX)

However, those in the Core Central Region were least affected, dropping only 0.5 per cent. Prices in the Rest of Central Region dipped 1.2 per cent, while those in the Outside Central Region fell by 0.7 per cent.

SRX said the price declines "reflect the current languid market sentiment and the sustained impact of the cooling measures".

With the Government maintaining the cooling measures, SRX said it expects private home prices to continue falling gently, with a 2 to 3 per cent decline in 2016.

However, it added that the decline in prices will continue to spur buyers to pick up units, possibly leading to an increase in volume of transaction.

The median Transaction Over X-Value (TOX), which measures whether people are overpaying or underpaying SRX Property’s estimated market value, fell from zero in November to -S$5,000 in December, according to the report.

For districts with more than 10 resale transactions, District 27 (Yishun, Sembawang) posted the highest median TOX of S$17,000. The lowest median TOX was in District 12 (Balestier, Toa Payoh, Serangoon) at -S$32,000.