Condo resale prices dip on flat volume in January: SRX Property

SINGAPORE - Resale prices of non-landed private residential properties continued to decline, edging down 0.2 per cent in January over the previous month.

Year-on-year, prices have dropped 6.5 per cent from January last year, which was also the month when when prices last peaked.

Prices in the prime central areas and the suburbs dropped by 1.7 per cent and 1.1 per cent respectively. On the other hand, prices just outside the prime areas saw an increase of 1.5 per cent.

Price Index by region

Resale volume also remained low. An estimated 370 non-landed units were resold in January, a slight 2 per cent increase compared to the 363 units that changed hands in December 2014.

Year-on-year, resale volume was 25.9 per cent higher compared with the 294 units resold in Jan 2014. But the resale volume is down 82.0 per cent compared to its peak of 2,050 units resold in April 2010.

SRX Property said non-landed private residential prices continue to face downward pressure and negative market sentiment.

The overall median Transaction Over X-Value (T-O-X) remained flat from the previous month at negative 10,000.

The median T-O-X measures whether people are overpaying or underpaying the SRX Property X-Value estimated market value.

The median T-O-X remained at negative $10,000 in January 2015, same as December 2014; Districts 11 and 12 posted high median T-O-X. For districts with more than 10 resale transactions in January 2015, district 11(Watten Estate, Novena, Thomson) had the highest median T-O-X of $60,000, followed by district 12(Balestier, Toa Payoh, Serangoon) at $6000.

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

Among relatively active districts, District 23, 15 and 18 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 23 (- Bukit Panjang, Choa Chu Kang) with T-O-X of negative $31,000, followed by negative $20,000 in district 15 (Katong, Joo Chiat, Amber Road) and district 18 (Tampines, Pasir Ris).

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

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