Mid-tier residential segment lead rebound in resale prices

CCR and RCR prices rose 1.1%.

Residential resale prices managed to rebound in May, strongly led by the high-end and mid-tier segments, as resale prices in the core central region (CCR) and rest of central region (RCR) rose 1.1% MoM, while mass market resale prices (outside central region or OCR) dipped 0.4% MoM.

According to OCBC Investment Research, transaction volumes similarly improved in May with 1,235 non-landed private homes sold – up 17.4% MoM over April 2017 and by a whopping 57.7% YoY over May 2016.

"Through our channel checks, buyer sentiments have clearly improved after the latest tweaks to the property curbs in March 2017 where some measures relating to the SSD and the TDSR were relaxed," it said.

It furthered, "We believe these changes were, on a net basis, supportive of the physical market and continue to forecast for
general home prices to reach an inflection point by 2018."