The SRPI from NUS estimates that private non-landed home prices increased by 0.5 percent per month in April

Prices for private residential non-landed properties inched up in April, turning around from the drop recorded in March, according to the Institute of Real Estate and Urban Studies (IREUS).

The latest estimates from the Singapore Residential Price Index (SRPI) released by IREUS on May 28 indicate that the price of condos increased by 0.5% m-o-m from March to April this year. The SRPI tracks the monthly change of private residential homes that are not landed in Singapore using an index of 818 condo developments that have been built.

According to the Singapore Consumer Price Index, the increase in April prices comes at a time when general consumer prices have increased 0.1% during the same time.

In April, the SRPI subindex for the Central Region (excluding the small units) increased by 0.6 percent per month. The subindex for other Central Regions (excluding the small units) increased by 0.5% m/m. Small units’ sub-index rose by 0.1% in that period.

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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 compared with the non-Central region segment and the small unit segment. This was due to buyers buying units up at projects like Cuscaden Reserve Klimt Cairnhill, and Watten House.

On the other hand Lim attributes the lower price rises for smaller units – which IREUS defines as units measuring 506 square feet or less and a lower volume of such units. “Small units were responsible for just eight percent of transactions during April,” Lim says, adding that buyers are likely to be focusing on larger two-bedroom units that provide greater flexibility.

The final total SRPI index for March was recalculated to reflect a 0.2 percent drop in the m-o -m range which is a little steeper than the 0.1% slip indicated by the flash estimate.

The sub-index for the Central Region, excluding small units, was revised to reflect an increase of 0.1% from initial estimates, which showed a decrease of 0.4 percent. The sub-index that does not include Central Region (excluding small units) when compared to the initial estimate, revealed a 0.3 percentage decrease.

The final sub-index for small units reflected the steeper 0.2% decline from its initial estimation of 0.1 percent decline.

Looking into the future Looking ahead, ERA’s Lim believes that prices for condos resold are expected to continue rising for larger homes in the non-Central Region, driven by more new launches projected in 2024. He says that recent completed units have boosted prices on the resale markets, but the competition from buyers could aid in keeping resales prices in check.

He anticipates a lower demand for Central Region condominium units due to the fact foreign buyers are dissuaded by the 60% Additional Buyer Stamp Duty. Overall, ERA forecasts resale home prices to rise by 4% to 6% by 2024.

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