Chart of the day: Median price for non-landed homes dips to $1.2m in May

This is said to indicate a rise in demand for more affordable units.

This chart from Propnex research shows that the median transacted price for non-landed homes dipped to $1.2m in May from $1.4m in January based on Realis data.

This is said to possibly indicate an increase in demand for more affordable units.

PropNex notes that it does not expect a sharp drop in prices given developers’ holding power and with households generally not over-leveraged for property purchase. In addition, the deferment of loan payments allowed by banks and low interest rates would support home financing.

The risk of fire sale remains low, and PropNex projects that overall private home prices could fall by up to 3% for FY2020 as the pandemic drags on.