The first month of the second quarter ended with a slight fall in resale private home prices. The shift in the winds could be due to the higher number of new launches in April, with buyers’ attention turing towards new projects instead.
On a brighter note, demand for shoebox apartments seem to be on the rise, with consistently increasing numbers over the months of March and April. Figures for this segment are taken separately and have shown an 0.7 per cent rise in prices for these units with floor areas of up to 506 sq ft in April, following a 1.3 per cent rise in March. Property analysts are however wary of calling it a market rebound as the rental prospects for suburban smaller apartments are not yet on the road to recovery. Though there is a sense of the market picking up, most of the uptick have been focused on the developer sales segment. After a few months without new launches, buyers have returned to the new homes market with fervour, though most are in search of value-for-money deals targeted at property investment rather than on picking out units from the resale sector.
In the districts of 4, 9, 10 and 11, resale private home prices fell 0.5 per cent. Included in the core central region are the Central Business District (CBD) and Sentosa Cove. Prices of private non-landed properties have fallen 13.8 per cent since its 2013 peak and because of the debt servicing ratio limits placed on loans, buyers often have to be more selective of what their loans go towards. New properties are their product of choice for the moment.
With April’s price decline, could the bottom of the property cycle be in sight?