Tag Archives: Singapore Real Estate

Resale prices of private homes up 1.9% in April

Resale prices of completed non-landed private homes surged 1.9 per cent last month from March, extending the 1.1 per cent rise in the previous month, according to Singapore Residential Price Index (SRPI) flash estimates released yesterday, calling into question the effectiveness of the seventh round of property market cooling measures.

The SRPI, compiled by the National University of Singapore’s (NUS) Institute of Real Estate Studies, showed prices rose across the board, with those of homes in the non-central region leading gains with a 2.4 per cent jump that reversed the 0.2 per cent decline in the previous month.

Prices of homes in the central region rose 1.3 per cent, building on the 2.8 per cent gain previously, while those of small units — with areas below 506 sq ft — were up 1.8 per cent, adding to the 0.8 per cent rise in March, the SRPI data showed.

The Government has introduced seven sets of measures since 2009 to cool the runaway housing market, the latest round being in January that included higher additional buyer stamp duties, lower loan-to-value-ratios and larger down payments.

The NUS Institute of Real Estate Studies said: “As with earlier policy measures, the latest cooling package announced in January apparently had only a temporary effect on the trajectory of housing prices.”

“Transaction volume actually increased in January 2013 from December 2012, and was partly triggered by the announcement of further tightening measures on Jan 11, 2013. Home buyers brought forward their purchases to avoid the imposition of additional transaction costs and lowered financing limits,” it said.

“Transaction volume and prices fell in February but have recovered since then, with the overall SRPI buoyed by the strength of the housing market in the non-central region … It is unclear that the seventh instalment of the cooling measures, described as the most comprehensive to date, has had the desired impact of mitigating house price inflation,” it added.

Source Today – 29 May 2013

Weak demand for resale property to continue

Singapore saw a sharp decline in residential resale volumes across all segments in the first quarter of 2013, according to a DTZ report.

The quarterly and year-on-year drop is a “stark contrast” to 2012, when resale deals rebounded following the introduction of the additional buyer’s stamp duty (ABSD).

“The recovery in resale volume last year was due to buyers finding better value in the resale market after some projects in the primary market set benchmark prices. In comparison, developers were more competitive in their pricing strategies this year and the latest round of cooling measures in January 2013 were more comprehensive than that in December 2011. The mismatch in the expectations between buyers and sellers could also have contributed to the weak resale volume,” said DTZ.

In terms of buyer profiles, foreigners accounted for 9.9 percent of all transactions in Q1 this year, up from an average of 6.4 percent in 2012.

However, demand from local buyers fell as they are now required to pay ABSD for their second and subsequent properties.

“Buying behaviour varied among non-Singaporean groups in the resale market. Firstly, purchases by USA nationals remained resilient, especially so in the high-end segment, as they are not subject to the 15 percent ABSD for foreigners. Transactions by Indonesian buyers in the high-end segment however fell. In comparison, demand from mainland Chinese buyers held up well across most price segments, except for those costing below S$1 million.”

Moving forward, DTZ expects the resale market to underperform as there are no discounts being offered unlike in the primary market. Buyer activity is also expected to be lower due to higher stamp duties, weaker rental growth and stricter financing regulations.

Source – PropGuru – 22 May 2013