The SRPI from NUS estimates that private non-landed home prices increased by 0.5 percent per month in April
According to the Institute of Real Estate and Urban Studies, the prices of private residences that were not landed rose in April. This is a turnaround from the decrease recorded in March.
According to IREUS’s estimates of flash of the Singapore Residential Price Index, released on May 28, condominium prices increased 0.5 percent in m/o between March and April of this year. The SRPI measures the month-to-month change of private residential properties that are not landed in Singapore using a basket of 818 completed condo developments.
The rise in prices for April is a result of the overall cost of living increased by 0.1 percent during the same period in accordance with the Singapore Consumer Price Index.
The SRPI sub-index for the Central Region (excluding small units) was up 0.6% m-o-m 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 percent during the same time.
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Eugene Lim, key executive officer Eugene Lim, chief executive officer at ERA Singapore, observes that prices in the Central region grew at a faster pace in April than the Central Region that is not as large and units due to buyers buying units in projects like Cuscaden Reserve, Klimt Cairnhill and Watten House.
Lim attributes the slow price increase of small units – that IREUS define as having less than 506 square feet to a smaller volume of transactions. “Small units were responsible for just 8% of transactions in April,” Lim says, adding that buyers are likely to be gravitating towards larger two-bedroom apartments which offer more flexibility.
The final SRPI index was adjusted to reflect an 0.2% m/m decline, an improvement of a little more than the 0.1% drop indicated by the Flash estimate.
The sub-index for the Central Region (excluding small units) was revised to reflect the fact that there was a 0.1 percent reduction from the initial estimates of a 0.4% drop. The sub-index for the Central Region that is not Central Region (excluding small units) when compared to the initial estimate, revealed an increase of 0.3 percent decrease.
The final sub-index of small units revealed an increase of 0.2 percent decline than its initial estimate of 0.1% decline.
ERA’s Lim says that condo resale prices will continue to increase for larger units outside the Central Region in 2024, due to more launches. “Recently constructed units have uplifted prices in the resale marketplace however, the increased competition for buyers can help keep the growth of resale prices in check,” Lim adds.
He expects a low demand for Central Region condominium units due to the fact foreign buyers are dissuaded by the additional buyer’s 60% Stamp Duty. In general, ERA forecasts resale home prices to rise by 4% to 6% in 2024.