The percentage of buyers willing to pay a premium for resale non-landed residential properties have fallen last month following a sharp drop in July, likely brought on by the recent stamp duty hike.
Prices of resale non-landed private properties fell in August
Last month, prices of resale non-landed private properties fell for the first time in 12 months with a drop of 0.2%. This was following July’s 1% rise despite the new property cooling measures which kicked in on July 6. Could the real effects of the curbs be starting to take root?
While last month’s dip in prices of resale properties may have put a damper on market sentiments, the numbers are expected to stay in the black, albeit at a slower rate of growth.
The price-rise has lowered from 9% to 8.8% but prices are still 11.2% higher than in that in August last year.
The number of resale private property transactions, however, fell a much steeper 35.3%. 694 units were sold in August, down from the 1,072 units sold in July. This could be due to the Hungry Ghost Festival which just ended last week.
Compared to August 2017, the resale volume is down 48.2%.
More property owners sell units at or under average market value
Some analysts are expecting the market to stabilize in the next few months as resale prices may have already peaked in some segments. Prices may even begin to soften in these segments.
In the Core Central region where properties are more likely to be purchased for investment rather than by buyer-occupiers, prices of resale properties fell 0.3%.
In the Outside of Central Region (OCR), however, prices continued to rise, last month by 0.8%. Buyers of properties here are more likely to be genuine home buyers.
In Bishan and Ang Mo Kio, resale properties sold with the highest average premium of $25,000 above market value. More than 10 resale transactions took place here. In Telok Blangah and HarbourFront, however, properties sold under market value by $37,000.