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Private home resale prices hit fresh highs in March: SRX flash

Private home resale prices hit fresh highs in March: SRX flash.

RESALE prices for private, non-landed homes moved up again in March to a new high, going by a private firm's latest flash estimates.

Prices for condominiums and private apartments rose by 1.5 per cent against February's peak, according to SRX Property data out on Tuesday. These gains were seen across the island, with home prices in the central core region up by 2.2 per cent on the previous month to record levels.

Homes in the rest of the central region set a record as well, posting a price increase of 1.3 per cent; among homes outside the central region, the rise was 1.3 per cent.

Meanwhile, the monthly price change for February was revised upwards to 2 per cent, from an earlier estimate of 1.9 per cent. All in all, March's performance marked a year-on-year price increase of 8.5 per cent; the quarter-on-quarter rise for the first three months of the year was 3.5 per cent.

Core central region private, non-landed home prices rose by 8 per cent year on year, with those in the rest of the central region gaining 11.4 per cent, and prices outside the central region higher by 7 per cent.

Meanwhile, resale volume swelled by 11.4 per cent to 1,310 units, compared with February, said SRX. This figure is however still 36.1 per cent lower than the peak in April 2010.

Residents displaced by collective sales are making their presence felt on the resale market, Christine Li, head of research at Cushman & Wakefield Singapore, told The Business Times: "The demand for apartments for immediate occupation will continue to rise as more such homeowners return to the resale market."

She said that resale sellers may be setting heftier price tags for their units, as recent land banking and project launches raised benchmark prices in some districts.

"Some resale units from projects with en-bloc potential could also be highly sought after and may be transacted at a premium," she added.

Meanwhile, Christine Sun, OrangeTee & Tie's head of research and consultancy, expects resale prices to keep rising in the coming months."As it seems, some en-bloc sellers are already purchasing a new home now, before the completion of the en-bloc sales, as they expect replacement cost to increase significantly in the months ahead," she said.

Huttons research head Lee Sze Teck noted that, with new homes being launched in the market this month and the next, resales could feel the pinch around the middle of the year: "Generally, resale prices lag behind new project prices by a few months."

Tricia Song, head of research for Singapore at Colliers International, told BT: "Home buyers remain price-sensitive and the resistance to higher asking prices could peg back resale volume. In addition, the buoyant collective sale market may encourage more owners to put their development up for sale, leading to potential sellers withdrawing their units from market."

Adapted from: The Staits Times, 11 Apr 2018