Private non-landed housing prices up 0.7% m-o-m in September: NUS SRPI flash estimate
The National University of Singapore’s Institute of Real Estate and Urban Studies (IREUS) released their overall Singapore Residential Price Index (SRPI) flash estimates on October 30th. The figures indicated a 0.7% month-over-month (m-o-m) growth in resale prices for private non-landed housing properties in Singapore, a notably smaller increase than overall consumer prices, which rose 0.5% m-o-m, according to the Singapore Consumer Price Index.
The SRPI tracks the price movements of a basket of 759 private residential projects completed between October 2003 and September 2021. Sub-index results for the Central Region (excluding small units) came in at 0.8% growth, while the non-Central Region (excluding small units) increased by 0.6%. Notably, the sub-index for small units experienced a 1.2% m-o-m gain.
The August overall SRPI was adjusted to a 1% m-o-m increase in comparison to the flash estimate of 0.7%. The Central Region (excluding small units) was also revised to 0.9% m-o-m growth from 0.8%, and the non-Central Region (excluding small units) was changed to 1% m-o-m, up from 0.7%.
According to Huttons Asia’s Senior Director of Data Analytics, Lee Sze Teck, buyers are resisting higher prices due to high interest rates, which have capped gains for sellers. This is reflected in the slower price growth observed in the resale condo market.
IREUS’s report also includes data on buyer profiles in the resale condo market over the last 12 months. On average, Singaporeans accounted for 74.6% of these purchases, followed by Singapore permanent residents at 21.4%, and foreigners at around 3.7%.
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Non-landed private residential sale volume fell by 28% m-o-m in September, in comparison to August’s 2.5% increase. Compared to the high in March, Singaporeans, Singapore permanent residents, and foreigners resale purchases dropped to 37.4%, 46.2%, and 86.7%, respectively. Foreigners purchased only 8 units in the resale market in September, a 56% decrease from the previous month.
Lee Sze Teck expects the high interest rate environment and economic uncertainties to continue to anchor buyer sentiment and thus put downward pressure on resale condo prices for the rest of the year. Prices are estimated to increase by at most 8% in 2023.