Despite Ghost Month dragging sales down, analysts say home prices will further rise.
The resale volume of private condominiums surged 64.8% YoY from 705 units to 1,162 units in September 2017, the Singapore Real Exchange (SRX) revealed.
However, according to its flash report, this is still down by 43.3% from its peak of 2,050 units resold in April 2010. On a monthly basis, this is also a 10.9% decrease compared to 1,304 units resold in August 2017.
According to Edmund Tie & Company head of research Lee Nai Jia, “The decline in sales is due to seasonal effects (Chinese 7th month). Notwithstanding, the y-o-y sales statistics suggests that the market is on the mend and residential prices are likely to appreciate further.”
The price of private condominiums inched up 4.3% YoY in September.
The prices of resold private condos grew 0.1% from August's prices.
Both prices of units in the Core Central Region (CCR) and Outside Central Region (OCR) dipped by 0.1% and 0.5%, respectively.
Unit prices in the Rest of Central Region (RCR) increased 1.1%.
Meanwhile, majority of buyers in District 3 or Alexandra/Commonwealth purchased units above market value. The area recorded the highest median transaction of x-value (T-O-X) at POSITIVE $38,000.
District 4, which covers Harbourfront and Telok Blangah, posted a T-O-X of NEGATIVE $104,000. This implies that a majority of buyers in the district bought units for below market value.
Lee added, “Moving forward, we are likely to see the market continuing to pick up, barring any external shocks. Sales in the next three months should still be higher on a y-o-y basis but we should see m-o-m sales staying around the same level or declining due to year-end festivities.”
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