The SRPI of NUS estimates that private non-landed residential prices grew 0.5 percent m/m in April
Prices for private residential non-landed properties increased slightly in April, turning around from the drop that was recorded in March, according to the Institute of Real Estate and Urban Studies (IREUS).
According to IREUS’s flash estimates of the Singapore Residential Price Index, released on May 28th, condo prices increased 0.5% m/o-m between March and April of this year. The SRPI measures the month-to-month change of residential homes that are private and non-landed in Singapore based on a basket of 818 completed condo developments.
According to the Singapore Consumer Price Index, the rise in prices for April comes at a time when general consumer prices have increased 0.1 percent over the same time.
The SRPI sub-index for the Central Region (excluding small units) grew by 0.6% m-o-m in April, whereas the sub-index of the non-Central Region (excluding small units) increased by 0.5% over the same time period. The sub-index for small units was up 0.1 percent in the same time.
Real estate experts observe that the Central Region prices rose faster in April compared with the non-Central Region segment and the smaller unit segment. This was because buyers snapped units from projects like Cuscaden Reserve Klimt Cairnhill, and Watten House.
On the flip side, the slower increase in prices of small units – which IREUS defines as those with 506 square feet or less and a lower volume of such units. “Small units accounted for only eight percent of transactions in April,” expert notes, saying that buyers could be moving towards bigger two-bedroom homes that offer more flexibility.
The final SRPI index was adjusted to reflect a 0.2 percent decline in m/m. This is a slighter decrease than the 0.1% drop indicated by the Flash estimate.
The sub-index of the Central Region, excluding small units, was updated to reflect the decrease of 0.1% from initial estimates that indicated a drop of 0.4 percent. 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 percentage decrease.
Meanwhile, the final sub-index for small units showed an increase of 0.2 percent decrease from its flash estimate of 0.1 percent decline.
Real estate expert believes that condo resales price will continue to rise for larger homes outside of the Central Region in 2024, because of more upcoming launches such as Parktown Residence. Recently constructed units have raised prices in the resale marketplace however, the increased competition for buyers may help to keep the rise of the resales market in check.
Real estate expert expects a slow interest in Central Region condominium units due to the fact that foreign buyers are dissuaded by the 60% Additional Buyer Stamp Duty. Real estate experts forecast that prices for resales will increase by 4% to 6% between 2024 between 2024 and 2025. To find out more about Parktown Residence pricing, stay tuned to this site.
