Technically, the SRX Price Index (SPI) for private, resale apartments inched up 0.3% in July. But, for all intensive purposes, the market is flat as a board, or, more aptly, flat as a bored.
At the risk of mixing metaphors, the private, resale condo market continued its journey on the road to nowhere in July. Transactions-Over-X-Value (TOX) has been ZERO for four month in a row. This means the market, overall, is trading at its X-Value, which, in turn, means there is neither positive nor negative market sentiment. Monthly transaction volume continues to hover around a paltry 500 units. The overall market is blah and boring. Sigh!
In our effort to find a glimmer of excitement in this otherwise dull property market, we are closely watching the Core Central Region (CCR), particularly District 9. TOX posted a POSITIVE $37,000, which suggests some positive market sentiment. Indeed, performance in CCR, overall, was much stronger in July than in June. However, it's too early to tell if this trend has any legs on it, and we will have to wait and see.
Until then, we can look forward to the elections with the hope that it will inject some much needed excitement into the property market.
- Non-landed Private Residential Resale prices inch up 0.3% in July 2015 compared to June 2015. In individual sectors, both CCR and OCR post price increases of 1.7% and 1.0% respectively. Meanwhile prices in RCR decrease by 2.2%.
According to the SRX Non-landed Private Residential Price Index:
- Year-on-year, prices in July 2015 drop 0.9% from July 2014;
- July 2015 prices are down 6.5% from the recent peak in January 2014.
- Price change in June was revised from a 0.4% increase to a 0.1% increase.
- According to Non-landed Private Residential Resale data compiled by SRX Property, an estimated 515 Non-landed Private Residential units are resold in July 2015. This is a 10.4% decrease compared to 575 units resold in June 2015.
- Year-on-year, resale volume in July 2015 is 33.4% higher compared with 386 units resold in July 2014;
- Resale volume is down 74.9% compared to its peak of 2,050 units resold in April 2010.
- The median T-O-X for Non-landed Private Residential measures whether people are overpaying or underpaying the SRX Property X-Value estimated market value.
- The median T-O-X in July 2015: $0.
- For districts with more than 10 resale transactions in July 2015, District 9 (Orchard, Cairnhill, River Valley) post the highest median T-O-X at $37,000.
This means that a majority of the buyers in this district purchased units above the computer-generated market value.
- Both District 15 (Katong, Joo Chiat, Amber Road) and District 21 (Upper Bukit Timah, Ulu Pandan) posts a T-O-X of NEGATIVE $35,000.
This means that a majority of the buyers in these districts purchased units below the computer-generated market value.