Business

Condo resale prices 'yet to hit bottom': Analysts

Condo resale prices continued to dip last month in a sign that this market segment has yet to bottom out.

Values declined by 0.3 per cent from January to February, according to flash estimates of the NUS Singapore Residential Price Index out yesterday.

The fall followed the 0.1 per cent dip in values from December to January.

"The statistics indicate that the bottom of the private residential resale price cycle is still not in sight yet," noted SLP International Property Consultants research head Nicholas Mak.

He added that overall resale prices for private non-landed homes could drop by 3 to 4 per cent for this year.

The central region, including districts one to four and traditionally prime districts of nine, 10 and 11, recorded the biggest decline in February, down 1 per cent, overturning a 0.5 per cent increase from December to January.

The data excludes small units. Small units - with a floor area of up to 506 sq ft - slipped 0.6 per cent last month, reversing the 0.1 per cent growth in January.

Market watchers do not expect the recent easing of cooling measures to push up private home resale prices.

"Persistent headwinds facing the property market remain unchanged. These include a weak rental market, the spectre of rising interest rates and a poor economic outlook," said OrangeTee head of research and consultancy Wong Xian Yang.

- THE STRAITS TIMES

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