The full article can be found in The Business Times, Real Estate Section, Page 13, 9 May 2018.
Condominium resale prices reached 12-month high in April 2018, where prices increased by 5.4 per cent in the first four months of the year and 9.5 per cent higher as compared to last year. Resale prices of non-landed private properties continue to increase across Singapore, with a recorded year-on-year price increase of 9.2 per cent in the Core Central region, 12.6 per cent in the Rest of Central Region and 7.3 per cent in the Outside Central Region. However, the volume of resale units has dipped 1.7 per cent in April 2018 and 33.7 per cent as compared to the peak in April 2010.
The median transaction-over-X value (T-O-X) for April 2018 is at positive S$20,000, unchanged from last month. The highest median T-O-X is at positive S$89,000 in district 11, comprising Watten Estate, Novena, Thomson estates. This means that majority of buyers in that district purchased units above the computer-generated market value. On the other hand, majority of buyers in district 27, comprising Yishun and Sembawang Estate, posted a negative T-O-X of S$15,000. This means that buyers in that district purchased units below the computer-generated market value.
Looking ahead, private residential resale prices will continue to rise, with a projected rise in resale price index by 10 per cent to 15 per cent. This is due to the positive market sentiment, spillover impact from the active en-bloc sale market and growing confidence of a recovery in the property market. However, the private residential resale volume may not increase at the same rate as the price index. The current active en-bloc sale market has reduced the stock of older completed units available for sale as many non-landed developments have either been sold collectively or are in the process of going for en-bloc sale. Hence, the owners would stop offering their units for individual sale in the resale market. As a result, the supply of completed units for sale in the market will drop, leading to limited growth in the resale volume. For the whole of 2018, the resale transaction volume is estimated to range between 11,000 units and 14,000 units.