Business

Condo resale prices hit 3-year high


Resale prices of condominiums continued to rise last month, lending weight to talk of a recovery in the property market.

Values of resale condos rose by 0.9 per cent from May to hit a three-year high last month, according to SRX Property flash estimates yesterday.

Its resale index hit 171 last month, the highest since May 2014, when it registered 172.1.

Resale prices are up 2.2 per cent from June last year but down by 4.4 per cent from the last peak in January 2014.

Last month's rise was an improvement from the revised 0.5 per cent increase in May, though a shade lower than the 1 per cent rise from January to February.

Mr Alan Cheong, senior director of research and consultancy at Savills, said: "The resale price growth in June was strong. Given that the resale market is typically a better reflection of the overall sentiment, it suggests there is some broad-based recovery in the market."

However, OrangeTee head of research and consultancy Wong Xian Yang said: "Weak rents will continue to weigh on prices. This is especially so for the outside central region, where competition for tenants is expected to remain intense due to high volumes of completions in recent years."

Last month's price growth was driven by the core central region, where resale values rose 1.3 per cent from May, and the suburbs, which recorded a 1.1 per cent increase.

Resale prices in the city fringe remained unchanged last month, the SRX said.

Its estimates showed that resale transaction volumes fell by 12.5 per cent to 1,065 units last month from the 1,217 shifted in May.

But sales were up by 51.1 per cent from the 705 units sold in June last year.

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