SINGAPORE – Singapore’s condo resale prices were down 0.4 per cent in June from its May peak, breaking an upward trend that had lasted four months, according to monthly flash figures from real estate portal SRX Property released on Tuesday (July 9).

The decline in June follows a 0.4 per cent gain in May.

Prices in the core central region (CCR) saw the biggest decline, down 0.7 per cent, while prices for outside central region areas retreated 0.4 per cent.

Prices in the city fringes, or rest of central region, were unchanged from May.

Volume of sales dropped 20.5 per cent with 666 units resold in June, compared to the 838 units recorded in May. Year on year, the decline was bigger at 41.8 per cent fewer units resold compared with June 2018.

However, overall condo prices were higher by 1.6 per cent versus June 2018.

SRX’s overall median transaction over X-value (TOX) was positive $10,000 in June, unchanged from May figures.

TOX measures how much a buyer is overpaying or underpaying for a property based on SRX Property’s computer-generated market value.

Among districts with more than 10 resale transactions, District 12’s Balestier, Toa Payoh and Serangoon posted the highest median TOX at positive $50,000, followed by District 14’s Geylang and Eunos at positive $45,000.

While District 16’s Bedok and Upper East Coast posted the lowest median TOX at negative $40,000, followed by District 15’s Katong, Joo Chiat and Amber Road at negative $30,000.

“The price decline in CCR could be attributed to fewer super luxury homes being sold in the month of June,” said Christine Sun, head of research and consultancy, OrangeTee & Tie.

According to URA data, there were 19 resale condos sold above $3,000 per sq ft (psf) in May, including two units that were transacted above $4,000 psf. Comparatively, only 11 units were sold above $3,000 psf in June, said Ms Sun.

As for the lower overall sales volume, Ms Sun said it is within expectations as sales activities are typically slower during the school holidays in June.

“Sales volume was much higher last June as the property cooling measures were not implemented then,” she said.

She expects increased marketing activities in the coming months due to more project launches, with buying interest from the primary market potentially spilling over to the resale market if sellers or properties in the vicinity are able to match the price expectations of buyers.

News Source: The Straits Times Singapore, 9 July 2019