Monday, January 28, 2013

Resale non-landed private home prices down


SINGAPORE — Prices of completed non-landed private homes fell 0.3 per cent in December from the previous month in a retreat following November’s 1.7-per-cent rise, according to the advance estimates of the Singapore Residential Price Index (SRPI) released on Monday.

According to the SRPI, published by the National University of Singapore’s Institute of Real Estate Studies, the decline was caused by the 1.3 per cent price drop for homes in the Central region. Prices of homes in the Non-Central region increased 0.5 per cent. The SRPI Small index, which covers units with areas of up to 506 sq ft, was unchanged.

Mr Lee Sze Teck, Senior Manager for Training, Research and Consultancy at DWG, said, “The drop in prices for December 2012 is surprising as official numbers from the Urban Redevelopment Authority showed a jump in prices for 4Q 2012. But this could be due to NUS revising its base to March 2009. Another possible reason for the drop is because it coincides with the school holidays. There is a positive correlation between price movements and transaction volume. When volume is lower, prices tend to be flat or register a small decline.”

“For January 2013, the prices for small units could see a rise because of the lower loan-to-value (LTV) ratio implemented on 12 January. Buyers are likely to adjust their budget downwards because of the lower LTV ratio and look to buy smaller units,” he added.

Martin Koh | 86666 944 | R020968Z
Sherry Tang | 9844 4400 | R020241C
Senior Sales Director
DTZ Debenham Tie Leung (SEA) Pte Ltd (L3006301G)

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