Singapore resale condo prices continue to weaken, slipping 0.7% in April: SRX Property

Resale prices of non-landed private residential properties continued to cool, dipping 0.7 per cent in April from March, according to flash estimates from SRX Property on Tuesday. -- PHOTO: ST FILE
Resale prices of non-landed private residential properties continued to cool, dipping 0.7 per cent in April from March, according to flash estimates from SRX Property on Tuesday. -- PHOTO: ST FILE

SINGAPORE - Resale prices of non-landed private residential properties continued to cool, dipping 0.7 per cent in April from March, according to flash estimates from SRX Property on Tuesday.

Year on year, prices have dropped 4.0 per cent from April last year.

March 2015 prices were down 6.9 per cent from the recent peak in January 2014. The price change in February 2015 has been revised from a 0.2 per cent decrease to a 0.4 per cent fall.

Prices in the prime central areas - or Core Central Region - and the suburbs - or Outside Central Region - fell by 0.1 per cent and 1.5 per cent respectively. On the other hand, prices in the city-fringe - or Rest of Central Region increased by 0.4 per cent.

The number of resale trandactions dipped in April. An estimated 440 non-landed units were resold in March, a 2.7 per cent decline from the 452 units resold in February 2015 .

Year-on-year, resale volume was 1.9 per cent higher compared with 432 units resold in April 2014. But resale volume is still down 78.5 per cent compared to its peak of 2,050 units that changed hands in April 2010.

However, SRX Property's April data could be flagging an uplift in sentiment with buyers of resale units in some districts now willing to pay at or more than the estimated market value of these apartments.

After being stuck in negative territory since December last year, the overall median Transaction Over X-Value (T-O-X) has improved by $10,000 from March to reach $0 in April. A $0 T-O-X means that the buyers are purchasing units at their computer-generated market value. The T-O-X is comparable to the previously used property market's cash-over-valuation or COV,

For districts with more than 10 resale transactions in April 2015, District 16 (Bedok, Upper East Coast) had the highest median T-O-X of $20,000.

This means that majority of the buyers in this district has purchased units above the computer-generated market value.

Among relatively active districts, District 15 posted the most negative median T-O-X. Among districts with more than 10 resale transactions, the lowest median T-O-X was in District 15 (Katong, Joo Chiat, Amber Road) with T-O-X of negative $21,000.

This means that majority of the buyers in these districts has purchased units below the computer-generated market value.