Prices for Singapore private flats plateau for fourth consecutive month – SRX

http://www.srx.com.sg/srx/index.jsp?link=newsArticles&id=b2g5w5k2y

Observations:

  1. Prices remained flat, posting a slight uptick of 0.4% on low volume. Non-landed Private Residential Resale prices increased 0.4% in October compared to September 2014.  Prices in RCR and OCR drove the overall index up with both increasing by 0.6% while prices in CCR dropped by 0.3%.

According to the SRX Non-landed Private Residential Price Index:

  • Prices hovered around 168.8 and 169.8 in the last 4 months since Jul 2014;
  • Year-on-year, prices have dropped 4.5% from October 2013;·
  • Prices have declined 5.2% since the recent peak in Jan 2014.

  1. Resale volume slipped by 2.2%. According to Non-landed Private Residential Resale data compiled by SRX Property, an estimated 451 Non-landed Private Residential units were resold in October, a 2.2% decrease from 461 transacted units in September.
  • Year-on-year, resale volume was 4.7% down compared with 473 units resold in October 2013;
  • Resale volume is down 78% compared to its peak of 2,050 units resold in April 2010.
  1. Overall median Transaction Over X-Value (T-O-X) remains negative. According to SRX Property, Non-landed Private Residential prices continue to face downward pressure and negative market sentiment.  The median T-O-X for Non-landed Private Residential measures whether people are overpaying or underpaying the SRX Property X-Value estimated market value.
  • The median T-O-X was NEGATIVE $4,000 in October 2014;
  • The median T-O-X has been negative since Oct 2013.

  1. Districts 9, 10 and 25 posted high median T-O-X. For districts with more than 10 resale transactions in October 2014, district 10 had the highest median TOX of $30,000, followed by $22,000 in district 9 and $15,000 in district 25.

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

  1. Among relatively active districts, District 14 posts the most Negative median T-O-X. Among districts  with more than 10 resale transactions, the lowest median T-O-X was in district 14 with TOX of NEGATIVE $41,000, followed by NEGATIVE $40,000 in district 12, and NEGATIVE $31,000 at district 11.

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

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