Last month’s resale private non-landed property prices remained flat, which could be a sign that the market is bottoming out.
The back-and-forth quick-step between sellers and buyers is a dance familiar to market players, but they are expecting further falls in prices of 3 to 6 per cent, especially in the suburban resale property market. In the Central regions and prime districts, prices have fallen considerably since its peak in 2013, and thus it’s not surprising to find a rise in resale volume of late. Investors who have been on the lookout for prospective buys will be quick to jump on these units.
In the suburbs, it is another picture altogether as prices have held relatively steady despite the property cooling measures. But the sheer number of new units entering the market, combined with the weakening leasing market, may bring an about-change soon. In addition, the per sq foot prices of newer condominium units have increased, due to their smaller sizes. What this could mean for the market is an expected further fall in prices as resale units will have to compete with the newer developments and the total quantum prices become more important for buyers.
But the industry could well expect and enjoy an increasingly positive resale volume as up to 6,000 resale units are projected to change hands this year.