Condo resale prices in rest of central region up by 1.8% in August

The overall resale prices of non-landed private homes increased by 0.2% month-on-month in August. In the rest of central region, resale prices of condos increased by 1.8% month-on-month in the same period. However, prices slipped by 0.5% and 0.2% in the core central region and outside central region respectively. According to SRX, resale volume of non-landed private homes fell by 16.8% to 466 units in August from 560 units in July. Wong Xian Yang from said that buyers may have perceived increased value in the resale market as there was more room for price negotiation as compared to the primary market. Ong Kah Seng from R’ST Research expects that the increase in household income ceilings for those buying executive condominiums will negatively affect the demand for resale private condos.

(Source: Business Times)

Condo rents in August fell by 0.4% month-on-month

According to data from SRX, private condominium and apartment rents have fallen by 0.4% month-on-month in August. Year-on-year, the rents in August had fallen 5.7% from August 2014. Particularly, private residential rents in the suburbs have fallen by 1.3% month-on-month in August this year while rents in the city centre fell by 0.7%. On the other hand, rents in the city fringe increased by 0.8% during the same period of time. Ong Kah Seng from R’ST Research believes that the increase in private home completions had affected rentals. According to Ong, 13,150 private residential units were launched in 2012. This increased to 19,941 units in 2014. A total of 21,563 units are expected to be completed in 2015, he said. As more private condos are completed, market experts predict that there will be an increase in the supply of HDB flats that are put up for lease. This is because HDB upgraders may rent out their flats after moving into the new condo units. As such, Ong expects the HDB flat rents to fall in 2015 by a total of 5%.

(Source: Business Times)

Overall home prices expected to fall by 30% by 2040

According to a survey by the NUS’s Institute of Real Estate Studies, home prices are expected to come down by 30% by 2040 as the old-age dependency ratio increases. The old-age dependency ratio is defined as the proportion of elderly to working-age population. As this ratio is expected to increase in Singapore due to an ageing population, home prices are expected to come down as there will be a fall in demand from an aged population. According to a working paper written by a team led by Chihiro Shimizu, working-age adults tend to have a higher demand for housing as most people will build up assets during their prime years. Nonetheless, experts believe that investment and immigration flows would mitigate the effect of an ageing population on the property market.

(Source: Business Times)


Duxton Hill shophouses sold for $19.6 million

Two separate land lots at Duxton Hill have changed hands for $19.6 million or $2,200 psf. The shophouses have a total land area of about 2,540 sq ft and a balance tenure of 72 years. The properties, which are linked, consist of three storeys and an attic. The upper levels of the shophouses have been leased to office tenants while the space on the street level has been rented out to food and beverage outlets.

(Source: Business Times)

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