Bright end to the year for property market

Bright end to the year for property market
A view of private condominiums and HDB flats in the eastern part of Singapore. While condo resale prices rose overall from the third quarter to $1,222 psf on average for October and November, the rental market recorded a dip, with overall gross rental yield at a six-year low of 3.77 per cent.

SINGAPORE - THE year looks like it is ending with a flourish for the property market, with turnover up and condominium resale prices already at a historic high.

The only weak spot is rentals, which have weakened in the wake of increased supply and job cuts among global firms.

Condo resale prices rose overall to $1,222 per square foot (psf) on average for October and November, according to the Singapore Real Estate Exchange (SRX) on Friday.

This is 5.4 per cent up on the $1,159 psf average recorded during the third quarter this year.

Although data for December is not in, PropNex chief executive Mohamed Ismail expects the figures to have a minimal impact on resale prices for this quarter.

Gains were seen across the island during October and November.

City centre resale prices were 2.8 per cent higher than the average in the third quarter, city fringe condos were up 3.3 per cent and suburban condo values shot up 4.5 per cent.

But Mr Ismail said "record supply in the pipeline could further help alleviate any pent-up demand" in the suburbs, and so prevent price spikes.

The overall islandwide price growth of 5.4 per cent was higher than the individual increase in each region because condos in the city centre, which are more expensive per square foot than the rest, made up a bigger percentage of transactions in October and November than in the third quarter, the SRX said.

Resale transaction volumes climbed 6 per cent to 2,483 in October and November, from July and August. However, analysts noted that December is typically a quieter month, given the festive break, so overall fourth-quarter transaction volumes may not show a significant increase.

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