Prices of resale condominiums fell 0.8% in December following a slight pick up the month before.
Market downtrend since last July’s property cooling measures
Resale private non-landed property prices rose for the first 7 months of 2018, peaking in July after which a downtrend ensued. There was a 7.7% increase in resale condominium prices from January to July last year.
In the last 5 months of the year, from August to December, prices, however, fell 1.4%.
While the price-decline was not as steep as the price-increments in the first 7 months of last year, analysts think that the growth could have been double-digit had it not for July’s fresh round of property curbs.
Despite the slightly quieter market performance in the second half of 2o18, resale prices are still 7.5% higher last month than in December 2017.
The premium which buyers were paying on average above market value for resale condominiums remained flat last month at negative $10,000.
Sales volume of non-landed resale private properties also affected
The property cooling measures may have also affected sales volume in the private non-landed resale property sector. Analysts noted that the number of resale transactions last month was only half that of December 2017.
Another reason for the dip in sales volume could also be an increase in the number of new property launches in recent months.
Developer sales are often attractive to buyers and investors as they come with the promise of brand new units and leases. Though resale properties do provide immediate occupation, individual sellers are often unable to match the advertising strength of private developers.
As more new launches are expected to hit the market this year, how will the resale private property market fare?