Thursday, March 29, 2012

Resale home prices continue to fall in February

Resale home prices have fallen steadily in the past three months, with small and high-end units recording the biggest drop.

Overall, prices in February dropped 0.8 percent compared to January, in addition to the one percent drop seen in December. Central home prices fell 0.9 percent while non-central prices slid 0.6 percent after it picked up by 0.3 percent in January.

Shoebox apartment prices (500 sq ft or smaller) dropped 0.9 percent based on the Singapore Residential Price Index (SRPI) compiled by the National University of Singapore.

According to property experts, the fall in prices do not come as a surprise, given the recent slowdown in the secondary market.

“The weakened leasing market is also a major deterrence for home seekers, especially investors whose main property-buying objective is to enjoy the benefits of a significant and encouraging immediate income stream,” said Ong Kah Seng, Director at R'ST Research.

Nicholas Mak, Head of Research and Consultancy at SLP International, said that “the variety of new launches have also drawn attention away from the secondary market.”

He added that buying new units could be easier for homeowners as they will have the choice of a progressive payment scheme, while resale properties require an upfront payment.

Meanwhile, experts believe that prices are likely to continue falling in the coming months.

However, Ong expects interest in resale properties to rise by Q2 2012, given “appropriate re-pricing” following a contraction in demand. 

View the original article here

Source From Peoperty Guru

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