Resale prices of condo units fall 0.7% in Sept; prices yet to bottom out

The Tanjong Rhu condominiums located by the Kallang River. Resale homes in Singapore changed hands at lower prices last month, led by units in the central region. -- ST PHOTO: NG SOR LUAN 
The Tanjong Rhu condominiums located by the Kallang River. Resale homes in Singapore changed hands at lower prices last month, led by units in the central region. -- ST PHOTO: NG SOR LUAN 

SINGAPORE - Resale homes in Singapore transacted at lower prices last month, led by sales in the central region.

Resale prices fell 0.7 per cent in September from the preceding month, a reversal from August's revised 0.2 per cent increase, according to the Singapore Residential Price Index on Monday.

Earlier estimates had indicated that values of private apartments were unchanged from July.

The reversal confirms analysts' last Friday, when the URA property price index for the third quarter was updated, that prices have yet to bottom out.

Prices for resale non-landed units in the city area posted a 0.9 per cent slip in September from the preceding month, after they remained unchanged in August.

Luxury units in the posh districts of the city centre have been suffering under the weight of cooling measures, since the Additional Buyers' Stamp Duty was raised for foreign buyers at the beginning of last year. The levy imposes an extra 15 per cent tax on foreigners, who are the biggest group of buyers of luxury homes.

Prices of suburban apartments also posted a dip of 0.6 per cent, after ekeing out a 0.3 per cent gain in the previous month.

Shoebox units, which are small apartments measuring 506 sq ft or less, were the only category to record a gain in September. Their resale prices rose by 0.4 per cent, after slipping 0.1 per cent in August.

The index, compiled by the National University of Singapore, tracks a basket of completed homes across the island.