The SRPI of NUS calculates that private non-landed home prices increased by 0.5 percent m-o-m in April
According to the Institute of Real Estate and Urban Studies The prices of private residential homes that are not landed increased in April. This is a change from the decline that was recorded in March.
According to IREUS’s latest estimates of the Singapore Residential Price Index, released on May 28th, condo prices increased 0.5 percent m-o-m in the months of March and April of this year. The SRPI is a measure of the monthly movements of private residential homes that are not landed in Singapore using an index of 818 condominium developments that have been completed.
Based on the Singapore Consumer Price Index, the rise in prices for April is occurring at a time that the overall cost of living has increased by 0.1 percent over the same time.
In April in April, the SRPI subindex for the Central Region (excluding the small units) increased by 0.6 percent m-o-m. The subindex for other Central Regions (excluding the small units) increased by 0.5 percent m-o-m. The sub-index for small units was up 0.1 percent 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 as well as the smaller unit segment. This is because buyers snapped units at developments like Cuscaden Reserve Klimt Cairnhill, and Watten House.
Lim attributes the slow price rise of smaller units – that IREUS defines as units with less than 506 square feet – to a lower volume of transactions. “Small units accounted for only 8percent of transactions in April,” Lim says, noting that buyers will likely be focusing on bigger two-bedroom homes that offer more flexibility.
The final SRPI index was adjusted for March to reflect an 0.2 percent decrease in m-o-m, less than the 0.1 percent drop reported by the estimate of Flash.
The sub-index of the Central Region, excluding small units, was updated to show the decrease of 0.1 percent from the initial estimates which indicated a decrease of 0.4 percent. The sub-index for the Central Region that is not Central Region (excluding small units) in comparison to the initial estimate, revealed an increase of 0.3 percent reduction.
The sub-index for small units revealed an increase of 0.2 percent decrease, as in comparison to the initial estimate of a 0.1 percent decrease.
The ERA’s Lim believes that condo resales prices will continue to increase for larger units that aren’t in the Central Region in 2024, because of more launches. The ERA’s Lim says recent completions have increased the prices of resales however the competition from buyers could aid in keeping resales prices in check.
He anticipates a lower interest in Central Region condominium units due to the fact foreign buyers are dissuaded by the additional 60% Buyer Stamp Duty. ERA estimates that resales prices will increase by 4% to 6% between 2024 between 2024 and 2025.
