Is the property market perking up?

In recent local press it was reported that while the sentiment in the Singaporean real estate sector has been mostly gloomy, the moody has clearly raised from the same time last year with talk that prices are bottoming out.

According to data from the Urban Redevelopment Authority (URA), there were 5,510 private property resales in 2015 up to Nov 30, up 21 % from the same period last year.

According to flash estimates from SRX Property, resale prices of non-landed properties dropped 1.2 % in the first 11 months of this year,

In comparison, they fell 4 % over the whole of last year. Resale prices even rose 0.6 %  last month over October, following a 0.6 % month- on-month decrease in October.

Private home resales were up across all three regions – they rose 31 % year-on-year to 1,226 units in the core central region for the first 11 months, according to URA data.

However, resale volumes were also up elsewhere. Transactions rose 21.5 % to 1,650 units in the city fringes and 16.1 % to 2,634 units in the suburbs, in the first 11 months.

A buyer with $1.2 million could get a three-bedroom unit at 1,300 sq ft in older 99-year leasehold condos, but could only buy a three-bedroom unit of just over 900 sq ft at a new launch. Many are buying near schools or their workplaces and are increasingly showing interest in regional centres, including Jurong and Tampines.

HDB resales are up as well with about 19,000 transactions expected for this year — 10 % more than that of last year. Similarly, HDB resale prices moderated by less than 2 % for the year so far, compared to the full-year fall of over 6 % last year.

Experts said that there could be an even higher number of resale transactions next year, while any more price declines should be marginal.

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