Prices of completed non-landed private homes rose a slight 0.2% last month even though competition in the market seems to have become fiercer as more units enter the market.
Overall prices down 0.4% in a year-on-year comparison
Across the board, prices of completed private homes rose 0.2%, varying in degrees in different regions though it is still 0.4% lower than the same time period last year.
In the central region (districts 1 to 4 including Sentosa, and districts 9 to 11) prices of completed apartments rose 1.4% (excluding shoebox apartments). However, prices of apartments outside the central region fell 0.6%, following a 0.1% dip in March.
New home sales also dipped last month as there were fewer launches in April.
The secondary private home market had to however compete with the unsold units from previous developer-led launches as well as new launches. The market is now tilting towards the side of the buyers and they now have more options to choose from, including resale HDB flats.
Will this affect the sale of private homes in the upcoming months?
Shoebox-apartment segment slipping in prices and sales
Where previously investors were furiously snapping up small apartments which had more palatable quantum prices, the pace of growth in terms of sales volume and prices have since fallen wayside.
While prices of completed private homes are 0.6% higher this year as compared to last year, prices of shoebox apartments have fallen 0.4%.
Prices of larger apartments in the central and non-central regions have risen 0.3% and 0.9% respectively.
From last year to date, shoebox apartment prices have fallen 1.4%. Since October last year, the unit size for new properties built outside the central region will be subjected to a 85 sqm minimum. This could limit the number of units within a development, but will it also mean higher prices for small apartments in upcoming launches?