Slipping private home prices cheer up buyers

April 1st, 2012 at 10:58 pm

Property hunters on the lookout for affordably-priced homes are in for some good news. Prices of completed private homes dropped in February, according to a report by The Business Times.

Flash estimates from the National University of Singapore SRPI (Singapore Residential Price Index) show they slipped by 0.8 percent from the previous month.

Small apartments island-wide, especially in the Central Region, saw the biggest decline of 0.9 percent month-on-month.

The sub-index for the Non-Central Region (NCR) also fell 0.6 percent on negative sentiment.

Nicholas Mak, Head of Research and Consultancy at SLP International, said “the downtrend in secondary market prices is a sign of slowing demand, which could potentially lead to the evolution of a buyer’s market over the next few months.”

Ong Teck Hui, Executive Director at Credo Real Estate, said the market will be a more conducive environment for buyers. However, it is yet to be seen whether secondary prices will soften enough to make buyers realise that the secondary market could offer better deals than the primary market.

Back in January, the NCR saw a monthly gain of 0.3 percent, while other sub-indices for larger units in the Central Region and small apartments fell 2.4 percent and 2.1 percent respectively. This brought the month’s overall SRPI index down by one percent month-on-month.