Prices of resale private homes flat in June

Prices of resale private homes in Singapore were flat month-on-month in June, according to flash estimates of the Singapore Residential Property Index (SRPI) by the National University of Singapore (NUS).

The index covering small units of 506 square feet and below – otherwise known as shoebox apartments – fell most sharply, by 1.4 percent. This is in contrast to the 1.9 percent increase recorded in May.

Prices in the central region declined by 0.9 percent in June, while those in the non-central area rose by 0.7 percent.

Donald Han, special advisor at HSR International Realtors, said: “The drop in prices of resale private homes in the central region is no indication of a lull activity in place.

“On the contrary, we are witnessing a gradual increase in high-end transactions and block deals like the recent 17 units sold at 8 Napier.

“The Napier deal would have an effect on the overall SRPI Central pricing, as the deal priced below $3,000 per square foot (psf) is marginally lower than the $3,204-$3,229 psf transactions done earlier this year.”

Mr Han added that the market is seeing signs of a pick-up in sales activity for the central region – conditional of a price discount.

Meanwhile, OrangeTee’s research & consultancy director Tan Kok Keong said the demand for resale private homes in the central area has been impacted by the recent Additional Buyer’s Stamp Duty, particularly from foreign investors.

But given that the demand for projects outside the central region came mainly from Singaporeans, Mr Tan noted that the increase in the index for non-central areas shows that there is still demand for resale private homes in the suburban areas.

Source : Channel NewsAsia – 30 Jul 2012

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