Resale prices of private non-landed homes rose in November after three months of decline following July's cooling measures.
Condominium and private apartment values rose 0.2% last month from October, noted flash estimates by SRX Property yesterday. This follows a 0.3% drop in October, a figure revised from an earlier estimated decline of 0.4%. Condo resale prices had enjoyed an unbroken 12-month run to new highs before declines took hold in August. They are still 8.8% higher than in November last year but down 0.7% from the peak in July when the property curbs were imposed. Buying activity in the resale market has stayed lacklustre. There were an estimated 662 resales in November, a 4.6% decline from the 694 units moved in October and a stark 55.4% below the 1,483 homes transacted in November last year.
Orange Tee & Tie head of research and consultancy Christine Sun said the resale market has yet to reach equilibrium due to a mismatch in price expectations between buyers and sellers.
"Buyers are largely waiting on the sidelines as they are probably expecting prices to soften after the cooling measures," she noted. "Some sellers, on the other hand, have raised their asking prices possibly taking the cue from recent developers' new sales where some projects have reached new benchmark prices for their locations."
SRX data also showed the premium that buyers were prepared to pay over market value fell last month. The overall median transaction over X-value (TOX) fell to negative $10,000 last month, compared to $4,000 in October. The TOX was zero in August. TOX measures how much a buyer is overpaying or underpaying on a property based on SRX Property's computer-generated market value.
District 21's Upper Bukit Timah and Ulu Pandan posted the highest median TOX of $22,000, followed by Jurong in District 22 with $20,000, among areas with more than 10 resale transactions. Bukit Timah, Holland Road and Tanglin in District 10 posted the lowest median TOX of negative $150,000, followed by District 9's Orchard, Cairnhill and River Valley, and Bishan and Ang Mo Kio in District 20 at negative $40,000.
"Adapted from The Straits Times, 12 Dec 2018."