Resale Prices Inch up in June; Volume Up 34% Year-on-Year
Yes, prices in the private apartment market inched up in June 2015 by 0.4%. Yes, year-on-year transaction activity increased 34% year-on-year. But, ho hum. Last year's transaction volume was anaemic. A 34% increase on nothing is nothing.
Take a look at the SRX Property Price Index. It's practically flat as a board. Take a look at the Transaction-over-X Value (TOX) graph, its been at zero for three consecutive months, meaning market sentiment is flat. Where's this market heading? On the road to nowhere?
Observations:
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Non-landed Private Residential Resale prices rise 0.4% in June 2015 compared to May 2015. In individual sectors, both RCR and OCR post price increases of 1.1% and 0.5% respectively. Meanwhile prices in CCR decreased by 0.8%.
According to the SRX Non-landed Private Residential Price Index:
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Year-on-year, prices in June 2015 drop 1.6% from June 2014;
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June 2015 prices are down 6.2% from the recent peak in January 2014.
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Price change in May revised from no change to a 0.1% increase.
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According to Non-landed Private Residential Resale data compiled by SRX Property, an estimated 552 Non-landed Private Residential units resold in June 2015. This is a 10.0% decrease compared to 613 units resold in May 2015.
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Year-on-year, resale volume in June 2015 is 34.0% higher compared with 412 units resold in June 2014;
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Resale volume is down 73.1% compared to its peak of 2,050 units resold in April 2010.
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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.
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The median T-O-X in June 2015: $0.
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For districts with more than 10 resale transactions in June 2015, District 5 (Pasir Panjang, Clementi) posted the highest median T-O-X of POSITIVE $30,000, followed by District 10 (Bukit Timah, Holland Road, Tanglin) and District 15 (Joo Chiat, Marine Parade, Katong) both with a median T-O-X of POSITIVE $14,000.
This means that a majority of the buyers in these districts purchased units above the computer-generated market value.
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District 9 scored a median T-O-X of NEGATIVE $55,000.
This means that a majority of the buyers in this district purchased units below the computer-generated market value.