The full article can be found in The Business Times, Real Estate Section, Page 13, 11 July 2018.
The resale prices of non-landed homes increased 0.2 per cent in June from May, and 10.6 per cent compared to June last year, with 0.1 per cent price increase in the Core Central region (CCR), and 0.4 per cent price increase Outside Central Region (OCR), while the volume plunges 25.5 per cent, from May’s 1,514 units to 1,128 units.
The Transaction Over X-Value (TOX) was highest in Upper Bukit Timah and Ulu Pandan, both located in District 21, which suggest that majority of the buyers bought units above market value.
On the other hand, Upper Thomson and Springleaf located in District 26 posted the most negative median TOX at S$12,000, suggesting that a majority of the buyers bought units below market value.
Nonetheless, the overall median Transaction Over X-Value (TOX) was positive S$17,000 in June 2018 despite a decrease of S$1,000 from positive S$18,000 TOX in May 2018.
ZACD Executive Director and Chief Investment Officer, Nicholas Mak said, “Resale volumes could fall in July and August if volume is based on the date of the issue of the option to purchase, but there will be no spike in resale volume on the evening of the government announcement as resale buyers may not have had time to react to the surprise news of the cooling measures on the evening of July 5.”
“In the next few months, there is likely to be a mismatch between the expected prices of buyers and sellers, which will result in declining transaction volume. It could take about six to 12 months from now for resale volume to gradually recover,” he added.
Click here to read the full article.
The article is also published in in Lianhe Zaobao, Finance Section, Page 32, 11 July 2018.
To read the full article in Chinese, click here.