They warn that investors remain wary, and the unexpected price bounce does not signal a sustained recovery.
Overall resale prices climbed 0.8 per cent from April to May, according to Singapore Residential Price Index flash estimates out yesterday. They had fallen 1 per cent from March to April as new launches drew buyers away from completed homes.
Consultants yesterday said May's price rise could have just been a blip, pointing out that the resale market largely remained stagnant. Resale prices are likely to have fallen or stayed flat from May to June, they added.
"Prices fell moderately in April. So the net effect is that prices are relatively flat for now," said ERA key executive officer Eugene Lim.
"There is still a mismatch of expectations between sellers and buyers, and sellers are not under pressure to cut prices."
R'ST Research director Ong Kah Seng said the increase in May was "very marginal", which signalled that investors remained cautious about the investment potential of completed homes.
"May's average price increase should be read as a 'one-off' monthly price increase, especially following months of consecutive price decreases." Mr Ong also cited "more buoyant mid-year economic and property buying activity" in general.
SLP International research head Nicholas Mak noted that buyers could have gained confidence in the resale market in May due to relatively strong sales of new homes that month.
Developers sold 1,470 new units, almost double the 749 moved in April.
The increase in private home resale prices in May was largely the same across the board.
Central region values rose 0.7 per cent from April to May, after having dipped 0.1 per cent from March to April.
Prices In the suburbs picked up 0.8 per cent in May after tumbling 1.9 per cent in April from March.
These figures exclude resale prices of shoebox units of up to 506 sq ft. They posted a 0.8 per cent gain in May from April after falling 1 per cent in April from March.
The index, compiled by the National University of Singapore (NUS), tracks a basket of 429 completed projects across the island, including newer ones such as Marina Bay Suites, Reflections at Keppel Bay and The Interlace.
This article was first published on June 1, 2014.
Get a copy of The Straits Times or go to straitstimes.com for more stories.