Prices dropped on low volume but sales in November 2014 were 6.6 per cent higher than sales in 2013. On top of that, the median Transactions-over-X Value (T-O-X) improved to zero.
"When sales volume is this low, macro-analysis becomes less relevant and individual transactions are more pronounced," said Sam Baker, CEO and co-founder of SRX Property.
"On the macro level, we can project, with reasonable certainty, that demand will continue to be anemic and prices will be relatively stubborn until there is a significant change to Cooling Measures, interest rates, supply, or an external shock, or some combination of the above. Until then, the action is at the street level and requires micro-analysis."
"50 per cent of buyers in November paid above the X-Value for their unit and 50 per cent paid below it. This means that not all buyers and sellers are being impacted by the Cooling Measures in the same way. A good percentage of expert agents and clients are using data to transact the right home at the right price in their particular project or street."
Non-landed Private Residential Resale prices slipped by 1.1 per cent. Non-landed Private Residential Resale prices decreased 1.1 per cent in November compared to October 2014. Prices dropped by 1.3 per cent in RCR and OCR, while CCR saw a slight price drop of 0.1 per cent.
According to the SRX Non-landed Private Residential Price Index, prices, on low volume, pushed below the support level established since Jul 2014.
Year-on-year, prices have dropped 3.4 per cent from November 2013 while prices have declined 6.3 per cent since the recent peak in Jan 2014. The revised index for October remains unchanged at 0.4 per cent price increase compared to September.
Resale volume shrank by 22.4 per cent. According to SRX Non-landed Private Residential Resale data compiled by SRX Property, an estimated 388 Non-landed Private Residential units were resold in November, a 22.4 per cent decrease from 500 transacted units in October.
Year-on-year, resale volume was 6.6 per cent higher compared with 364 units resold in November 2013. Resale volume is down 81.1 per cent compared to its peak of 2,050 units resold in April 2010.
Overall median Transaction Over X-Value (T-O-X) reached zero. According to SRX Property, the median T-O-X for Non-landed Private Residential reached a neutral level in November. The median T-O-X for Non-landed Private Residential measures whether people are overpaying or underpaying the SRX Property X-Value estimated market value.
The median T-O-X was $0 in November 2014 making it the first time a non-negative median T-O-X is reported since Oct 2013.
Districts 9, 22 and 11 posted high median T-O-X. For districts with more than 10 resale transactions in November 2014, district 9 had the highest median T-O-X of $80,000, followed by $30,000 in district 22 and $15,000 in district 11.
This means that majority of the buyers in these districts has purchased units above the computer-generated market value.
Among relatively active districts, District 5 posts the most Negative median T-O-X. Among districts with more than 10 resale transactions, the lowest median T-O-X was in district 5 with T-O-X of negative $40,000, followed by negative $20,000 in district 16, and negative $15,000 at district 19.
This means that majority of the buyers in these districts has purchased units below the computer-generated market value.
SRX is an information exchange formed by the leading real estate agencies in Singapore. Its purpose is to disseminate market pricing information and facilitate property transactions. Find out more at www.srx.com.sg.