Condo resale prices rise 0.9% in June to 3-year high: SRX Property

Condo resales prices in June rose by 2.2 per cent from the same month a year ago.
Condo resales prices in June rose by 2.2 per cent from the same month a year ago. ST PHOTO: KUA CHEE SIONG

SINGAPORE - Resale prices of non-landed private homes in Singapore rose by 0.9 per cent month-on-month in June to a three-year high, according to flash estimates from SRX Property on Tuesday (July 11).

Its resale index hit 171.0 last month, the highest since May 2014 when it registered at 172.1.

Compared to a year ago, condo resale prices are up 2.2 per cent from June 2016, though they are still down by 4.4 per cent from their last peak in January 2014.

June's price rise was an improvement from the revised 0.5 per cent increase in May, though a shade lower than the 1 per cent increase from January to February this year.

Mr Alan Cheong, senior director of research and consultancy at Savills, said: "The resale price growth in June was strong. Given that the resale market is typically a better reflection of the overall sentiment, it suggests that there is some broad-based recovery in the market."

June's price growth was driven mainly by the core central region, which saw a resale values rise by 1.3 per cent from May, and the suburbs which recorded a 1.1 per cent increase.

Resale prices in the city fringe remained unchanged in June, SRX said.

Its estimates showed that resale transaction volumes fell by 12.5 per cent to 1,065 units last month from the 1,217 shifted in May. But compared with a year ago, sales were up by a hefty 51.1 per cent from 705 units sold in June 2016.

"Sales fell in June largely due to school holidays. We expect the sales momentum to continue after June," noted Dr Lee Nai Jia, head of research at Edmund Tie & Company.

SRX's median transaction over X-value (TOX) - which measures if buyers are overpaying or underpaying its computer-generated market value - came in at S$1,000 last month, down from S$2,000 in May.

The Newton and Novena areas posted the highest median TOX at S$40,000, while the Harbourfront and Telok Blangah districts recorded a negative TOX of S$120,000, which meant that most buyers in that district bought units below SRX's computer-generated value.