RESALE prices of non-landed private homes in Singapore rose 0.6 per cent in January 2016 over the previous month, according to the latest flash estimates from SRX Property. This contrasts with a 0.5 per cent month-on-month drop in December 2015.
The December decline is a revision from the 0.8 per cent drop SRX Property had indicated earlier based on its flash estimates for that month.
SRX Property said on Thursday the January flash estimate index value translates to a decline of 1.7 per cent year on year and a fall of 7.2 per cent from the recent peak in January 2014.
SRX Property's analysis showed that in all three geographical regions, prices were higher month on month in January. Prices appreciated 1.0 per cent in Core Central Region, 0.1 per cent in the city-fringe or Rest of Central Region and 0.8 per cent in the suburbs or Outside Central Region.
SRX Property estimated that 364 non-landed private homes were resold last month - a decline of 20 per cent compared with the 455 units resold in December last year.
However, last month's resale volume was up 3.7 per cent compared with the 351 units transacted in January 2015.
SRX Property's data showed that the overall median transaction over X-Value (TOX) fell to negative S$10,000 in January, from negative S$5,000 in December 2015. In November 2015, it was zero.
The median TOX measures how much people are overpaying or underpaying against the computer-generated estimated market value or the so-called X-Value.
ERA Realty key executive officer Eugene Lim commented: "Although prices posted a slight increase in the month of January, the overall trend for the year should still be downwards.
"This is because overarching issues continue to press on the property market. The economy is facing headwinds and the rental market continues to face downward pressure due to supply and demand mismatch as the economy is restructuring to be less reliant on foreign manpower.
"In addition, in view of rising interest rates and weak rental market, owners of multiple properties bought before the imposition of the TDSR (total debt servicing ratio) framework might find themselves forced to dispose of some properties if they are unable to continue servicing their mortgages."