Chart of the day: Residential resale prices hardest hit by policy curbs

Prices dropped by up to 10%.

Residential resale prices suffered the biggest drop in 2014, while prices in the primary market held up better.

Data from DTZ show that prices of resale condominiums dropped by close to 10% in 2014, on back of a 30% plunge in transaction volumes.

Meanwhile, data from SRX Property show that non-landed private residential resale prices declined year-on-year in both January and February, with resale prices down 5.8% from the recent peak in January 2014.

According to DTZ, primary market prices held up better because developers have generally not lowered prices to attract buyers, given that most still have healthy balance sheets.

“Based on a basket of completed properties tracked by DTZ Research, the luxury segment experienced the largest decline in prices, falling by another 2.5% q-o-q in Q4, bringing the total decline for the year to close to 10%. On the other hand, prices of freehold condominiums located in the prime districts 9, 10 and 11, as well as suburban leasehold condominiums saw a softer fall of 2.0% q-o-q in Q4. On a y-o-y basis, both prime freehold and suburban leasehold condominiums recorded a fall of close to 8%,” stated DTZ.