Prices of resale private homes softened in May as the government's cooling measures continued to dampen the market.
Non-landed private residential units showed an overall price drop of 0.5% in May compared to April, according to data from major property agencies compiled by the Singapore Real Estate Exchange (SRX).
Prices of resale non-landed private homes in the city area dropped 0.5% over the previous month while those in the city fringes declined 0.4%.
However, prices of resale suburban private homes remained resilient, reporting a 0.3% increase.
The SRX projected the final volume figure in May to be around 750 units, which would exceed the 671 units sold in April. This would still represent a 40% drop from the same period last year. There were 1,292 non-landed resale cases in May 2012.
Orange Tee's Head of Research & Consultancy Christine Li said the stand-off in the resale market could be due to the mismatch in expectations between buyers and sellers, who are still reluctant to reduce asking prices amid record property prices.
As a result, buyers prefer to buy directly from developers who are offering discounts and incentives.
Meanwhile, overall rental prices for non-landed private residential in May slipped 0.6% from April, marking a fourth consecutive monthly drop in overall rents.
Ms Li expects rentals to slide further in the upcoming months, given the strong pipeline of new private homes slated for completion this year.
Source: Channel News Asia
First it was sub-sale, now both resale and rental continue to soften. Are we finally heading down the "cannot sell cannot rent" road..?