Prices rise 0.4% over April, number of deals up 17.4%, but experts split on whether it signals market recovery
PUBLISHED JUN 14, 2017, 5:00 AM SGT
More sales and higher costs a month ago have started talk that the property market could at last be on the cusp of recuperation following a three-year droop.
Resale costs of private townhouses rose 0.4 percent a month ago over April while the quantity of transactions shot up 17.4 percent, as indicated by SRX Property streak gauges yesterday.
Prices were ahead 1.5 percent from May a year ago.
SRX Property said a month ago’s uptick in resale prices took after an updated 0.2 percent drop from March to April. The expansion was driven by changes in the core central and city-fringe districts – each rose 1.1 percent from April – yet the suburbs recorded a marginal price decline of 0.4 per cent from April to last month.
The enormous mover came in the area of transactions, with 1,235 private condo sold a month ago – up a striking 57.7 per cent from the 783 shifted in May last year and 17.4 per cent ahead of April.
Regardless of the better numbers, there are blended perspectives on whether they proclaim a market recuperation.
“The market has turned after an over-extended downcycle… I believe prices will rise gradually over the course of the year,” noted Mr Alan Cheong, head of research at Savills Singapore.
Dr Lee Nai Jia, head of South-east Asia research at consultancy Edmund Tie and Company, said: “The price trend, together with the diminishing supply of unsold units in the primary market and higher land bids, do suggest that the market has bottomed and stabilised.”
Be that as it may, consultancy OrangeTee disclosed to The Straits Times that it is untimely to decide inferable from the testing renting market.
Said its exploration and consultancy head Wong Xian Yang: “Rents are as yet falling and would keep on exerting descending weight on costs, so it may be too soon to get a bottoming out of the market.”
Be that as it may, Mr Wong anticipates that resale volumes will keep on increasing as purchasers come back to get units in the midst of enhancing assumption and generally low loan fees.
Dr Lee included that the sound deals at new venture dispatches, bullish offers for improvement destinations among designers and the current surge in aggregate arrangements will additionally feed purchasing interest.
General private home estimations – including new and resale properties – had fallen by 11.6 per cent from a peak in the third quarter of 2013 to March 31 this year.
SRX’s middle exchange over X-esteem (TOX) – which measures if purchasers are overpaying or coming up short on its computer generated market value – came in at $2,000 a month ago contrasted and $5,000 in April.
Harbourfront and Telok Blangah locale posted the most elevated middle TOX at $60,000, while Changi region recorded a negative TOX of $21,000, which implied that most buyers in that district bought units below SRX’s computer-generated value.
Source: http://www.straitstimes.com/business/property/resale-condo-prices-up-in-may-with-more-sold
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