Will property market bottom out soon?

Hopes of a market rebound may be reignited as the bottom of the cycle seems to be in close reach. While private home prices have fallen by 0.4% for the 13th consecutive quarter, the rate of decline of private home prices have been reduced from the 1.5% in 2016’s Q3.

cairnhillresidencesIn 2016, private home prices fell only 3%, the slowest since 2013. Since the third quarter of 2013, home prices have fallen 11.2%, with a 4% fall in 2014 followed by a 3.75% fall in 2013. The projected fall in home value this year is 2% to 3%. While home seekers and investors may be drawn back into the market with the lowered property prices, analysts are not expecting them to splurge.

highlandresidencesIn Q4 of 2016, non-landed private home prices fell 0.7 per cent, led by city fringe properties with a 2 per cent drop. Prices of units in the core central region remained unchanged while suburban home prices fell 0.3 per cent. Units in the core central region have suffered a 1.9 per cent fall in Q3, thus the fact that sales volume have increased while prices remained unchanged could be a good sign for the year ahead.

Landed property prices posted a surprising rise of 0.9 per cent after a 2.7 per cent fall in Q3 while in the resale HDB flat market, prices fell 0.1 per cent.

Integrated properties bring buyers in

The weekend brought good cheer to the developers of a couple of new residential properties Cairnhill Nine in the heart of Orchard Road and The Wisteria in Yishun.

CairnhillNine

Photo credit: CapitaLand

In the prime Orchard road district, half of the 268-unit Cairnhill Nine has been sold. 200 units ranging from 591 to 3,864 sq ft were launched over the weekend. The project has a good variety of units with one-bedders and two-bedders which included guest rooms, and also four-bedroom units and penthouses. The area is near the major shopping belt, with amenities such as the library@orchard and Mount Elizabeth hospital and the Novena medical area just a stone’s throw away. With MRT stations and bus stops situated nearby, and its integration with serviced residence Ascott Orchard Singapore, Cairnhill Nine looks set to be a worthy addition to the many other private apartments in the area. Nearby is the luxury Hilltops condominium, Cairnhill Residences, Helios Residences and The Peak @ Cairnhill.

WIsteria YishunPhoto: The Wisteria in Yishun

Close to 85% of the 138 units at Wisteria, a mixed-use project developed by Northern Resi which includes a 2-storey mall, have been snapped up last weekend. There has been a number of promising new properties popping in Yishun in the past year and this just adds to the pie.

Both the Wisteria and Cairnhill Nine are 99-year leasehold properties.