Private non-landed housing prices grow 0.5 percent m-o-m during April: NUS SRPI flash estimate
According to the Institute of Real Estate and Urban Studies The prices of private residences that were not landed increased in April. This is a significant improvement from the decline that was recorded in March.
Quick estimates of the Singapore Residential Price Index (SRPI) released by IREUS on May 28 indicate that prices for condos increased by 0.5 percent from March through April this year. The SRPI tracks the month-on-month movement of residential homes that are private and non-landed in Singapore based on a basket of 818 completed condo developments.
The rise in prices for April comes as general consumer prices increased 0.1 percent during the same time frame as per the Singapore Consumer Price Index.
The SRPI sub-index for the Central Region (excluding small units) grew by 0.6 percent in April, while the sub-index for the region that is not Central (excluding small units) rose by 0.5 percent over the same period. The sub-index for small units climbed up 0.1% during that time.
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Eugene Lim is the key executive officer of ERA Singapore. He observes that the Central Region prices rose faster in April than the non-Central region segment and the smaller unit segment. This is due to buyers buying units from projects like Cuscaden Reserve Klimt Cairnhill, and Watten House.
Lim attributes the slow price rise of smaller units – which IREUS defines at units measuring less than 506 square feet to a smaller volume of transactions. “Small units were responsible for just eight percent of transactions during April,” Lim says, noting that buyers will likely be focusing on larger two-bedroom apartments which offer more flexibility.
The final SRPI index was adjusted for March to reflect a 0.2 percent decline in m/m. This is an improvement of a little more than the 0.1 percent decline indicated by the estimate of Flash.
The sub-index for the Central Region (excluding small units) was revised to reflect the fact that there was a 0.1% decrease from initial estimates of an 0.4% drop. The sub-index for the non-Central Region (excluding small units) was updated to show the level of 0.3%, compared to the estimate that did not show any changes in the sub-index.
Meanwhile, the final sub-index for small units showed the steeper 0.2 percent decline than the flash estimate of 0.1% decline.
Looking into the future Looking ahead, the ERA’s Lim believes that condo resales are expected to continue rising for larger homes in the non-Central Region, driven by the number of new launches projected in 2024. “Recently completed units have raised prices in the resale marketplace, but the competition for buyers may help to keep the rise of price of resales in check” Lim adds.
However, he anticipates the demand for Central Region condo units to be sluggish because of foreign buyer demand being slowed by the high Additional Buyer’s Stamp Duty of 60 percent. ERA estimates that resales prices will rise by 4 to 6 percent between 2024 to 2025.
