Private property market 'stabilising'

Resale prices of private apartments rose a tad last month - a further sign that the market is stabilising. Values were up an estimated 0.3 per cent month on month after rising 0.1 per cent from May to June, according to flash estimates from SRX Property's price index.

"It would seem prices have reached an equilibrium level and we are unlikely to see large changes in price levels," said Mr Eugene Lim, ERA Realty key executive officer.

But he noted it is still too early to pinpoint a definite trend as the SRX reading is based on monthly transactions.

Price changes were mixed across regions - up 1.7 per cent in the central region, 1 per cent ahead in the suburbs but down 2.2 per cent in the city fringes.

SIGNS OF STABILITY

It would seem prices have reached an equilibrium level and we are unlikely to see large changes in price levels.

MR EUGENE LIM, ERA Realty key executive officer

This could be due to investors being typically more cautious in this half of the year, said Mr Ong Kah Seng, R'ST Research director. The sale of a property last month or this month would likely be fully completed near the end of the year - at the same time that leasing activity seasonally slows down, he said.

"City fringe properties usually receive higher investor interest," he added.

An uptick in interest in completed suburban properties could have followed the strong demand for units in High Park Residences in Sengkang when it launched last month, he said.

There were about 515 private apartments resold last month, 10.4 per cent lower than June and 16.9 per cent down on May but still 33.4 per cent higher than the 386 units moved last July.

ERA's Mr Lim said the momentum could continue as buyers are drawn to stabilising prices.

Rennie Whang

A version of this article appeared in the print edition of The Straits Times on August 14, 2015, with the headline 'Private property market 'stabilising''. Print Edition | Subscribe