Resale transactions of private homes shoot up in March, prices inch up

Private homes in Singapore changed hands at a faster pace last month, sending prices slightly higher as well. -- ST FILE PHOTO: DESMOND LUI
Private homes in Singapore changed hands at a faster pace last month, sending prices slightly higher as well. -- ST FILE PHOTO: DESMOND LUI

SINGAPORE - Private homes in Singapore changed hands at a faster pace last month, sending prices slightly higher as well.

But rents fell to their lowest level since December 2011 due to a greater supply of homes for lease, even though more homes were rented out.

There were 451 resale transactions of non-landed private homes in March, an 82.6 per cent leap from the preceding month, the Singapore Real Estate Exchange (SRX) said on Wednesday.

This was the highest resale volume since October last year but was still 22.5 per cent lower than the 582 units resold in March last year.

Prices also inched up 0.2 per cent last month after tumbling 3.1 per cent in February.

The gains were led by homes in the city fringe, where prices rose 1.3 per cent. City centre homes also saw prices grow 0.3 per cent. However, suburban condominium resale prices softened 0.1 per cent.

Rental volumes also climbed, though rents sank.

An estimated 3,087 private homes were rented in March, up 27.8 per cent from the 2,416 leasing deals in February, the SRX said.

Overall rents dropped 0.9 per cent in March on top of a 0.9 per cent fall in February, hitting a 27-month low since December 2011.

"Rental prices continue to decline with record supply," the SRX said.

More than 17,000 private residential units are expected to be completed this year, the highest since Urban Redevelopment Authority records began in 1996.