Private non-landed housing prices up 0.7% m-o-m in September: NUS SRPI flash estimate
The Institute of Real Estate and Urban Studies (IREUS) of the National University of Singapore released flash estimates for the overall Singapore Residential Price Index (SRPI) on Oct 30. It indicated an increase in prices of resale private non-landed residential properties by 0.7% m-o-m in September.
The SRPI tracks and measures the price changes of a collection of 759 non-landed private residential projects that have been completed between October 2003 and September 2021.
The sub-index for the Central Region (excluding small units) grew by 0.8% m-o-m in September while the sub-index for the non-Central Region (excluding small units) increased by 0.6% m-o-m. The sub-index for small units was a notable 1.2% m-o-m higher in September.
Flash data indicated that the overall SRPI for August was adjusted to 1% m-o-m – up from the 0.7% m-o-m growth in the flash estimate. The final figure for the sub-index for the Central Region (excluding small units) saw a 0.9% m-o-m climb, and for the non-Central Region (excluding small units), the sub-index was adjusted to a 1% increase.
The final figure for the sub-index of small units remained the same as the 0.3% m-o-m growth in the flash estimate.
Lee Sze Teck, senior director of data analytics at Huttons Asia, suggested that the slower price growth of resale condo markets indicated by the SRPI in September is likely due to the higher-for-longer interest rates that capped gains for sellers.
IREUS also presented data on the buyer profiles in the resale condo market. Singaporeans accounted, on average, of about 74.6% of resale condo purchases, followed by Singapore permanent residents at about 21.4%, and foreigners at about 3.7%.
In September, the number of non-landed private homes purchased by Singaporeans, Singapore permanent residents, and foreigners in the resale market decreased by 37.4%, 46.2% and 86.7% respectively.
The resale condo market recorded a decrease in volume of 28% m-o-m whereas in the month before, it grew 2.5% m-o-m. The number of units purchased by foreign buyers in the resale market was eight units, a 56% decline from the 18 units the month before.
This is why
Tampines Ave 11 Condo is an increasingly popular choice amongst home-seekers.
According to Lee, the high interest rate environment and ongoing economic uncertainties are expected to continue spurring a cautious sentiment that will pressurise the resale condo market for the remainder of the year. “Prices are estimated to increase by at most 8% in 2023,” he added.