Non-landed private resale deals surge

IN A POSSIBLE red flag to investors, while more non-landed private resale homes were sold in the second quarter, the number of leases inked fell, new figures show.

Singapore Real Estate Exchange (SRX) data found that 3,450 resale transactions were closed - the market's best showing in the past year.

Resale volumes shot up 64 per cent from the 2,108 units sold in the sluggish previous quarter.
Experts say higher prices at new project launches have diverted buyers back to the resale market.

Average prices for resale homes in the city centre also rose 5.4 per cent to $1,724 per sq ft, eclipsing prices in the previous three months, and are at their highest ever.

The non-landed private rental front, however, saw a more subdued performance. The number of rental contracts inked dipped 4 per cent to 7,198 leases in the three months to June compared with the previous quarter's figure.

Gross rental yields also declined across the board. Overall yields came in at 4.01 per cent in the second quarter, down from 4.26 per cent in the same period last year.

City centre homes posted the lowest yields of 3.2 per cent, followed by suburban homes with 3.99 per cent. City fringe homes were tops at 4.02 per cent.

Experts say demand and rents of high-end homes have taken a hit as corporations cut back on spending.
Prime rents have fallen 8 per cent since a year ago.

Source: The Straits Times – 7 July 2012