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Private resale prices now just 0.6% below July 2018 peak: SRX

Private resale prices now just 0.6% below July 2018 peak: SRX.

Flash estimate shows resale non-landed private homes sold in March up 59.3% to 830 units after CNY lull in Feb. The private resale property market saw its biggest recovery in activity since being hit by the last bout of cooling measures, according to flash estimates from SRX Property on Tuesday.

Flash data from the real estate portal showed the number of resale non-landed private homes sold last month jumped 59.3 % to 830 units after the Chinese New Year seasonal lull in February when 521 units were transacted. March resales reached the highest volume since the property curbs were implemented in July last year.

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Resale prices in the prime districts (or core central region) dipped by 2.1 % while remaining the same in the city fringes (or rest of central region)

Meanwhile, the resale prices of condominiums and private apartments edged up 0.1 % rise in March from the previous month, for a second straight month-on-month increase, after dipping in December and January.

This brings private non-landed resale prices to 3.5 % higher than a year ago, after February's month-on-month price rise was revised up to 0.6 % from an earlier estimate of a 0.5 % increase, according to the SRX data.

Resale prices are now just 0.6 % lower than their peak in July 2018 when the cooling measures struck. The price rise last month came from the 1.3 % increase in the outlying areas (or outside central region), where prices rose a third consecutive month.

In contrast, resale prices in the prime districts (or core central region) dipped by 2.1 % while remaining the same in the city fringes (or rest of central region). On sales volume, Christine Sun, OrangeTee & Tie head of research & consultancy, said the highest resale transactions in March were mainly from districts 19, 23, 18, 15, 16 and 5, where new projects were recently launched in some of these districts, based on an analysis of URA Realis caveats.

Said Ms. Sun: "The trend may indicate that marketing activities arising from new project launches may spur buying interest in the secondary market within the vicinity. We may expect buying interest for resale homes to pick up further in selected locations as more projects will be launched in the coming months."

Nicholas Mak, head of the research and consultancy department at ZACD Group, noted that in the eight-month period after the implementation of the latest round of property cooling measures, the average monthly resale volume dropped to 653 units.

"This could be the 'new normal' monthly resale volume for the private non-landed residential resale market. Therefore, the 41 % year-on-year decline of resale volume in March 2019 was not surprising," he said.

Adapted From The Business Times, April 10 2019