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 its Flash Estimates for the Singapore Residential Price Index (SRPI) on Oct 30, which indicated a 0.7% increase in prices of resale private non-landed residential properties m-o-m in September. This comes on the back of a 0.5% growth in overall consumer prices in the same month, according to Singapore’s Consumer Price Index.

IREUS’ basket of 759 non-landed private residential projects completed between October 2003 and September 2021, was used to measure the price movements – with the SRPI sub-index for the Central Region (excluding small units) rising by 0.8% m-o-m and that for the non-Central Region (excluding small units) increasing by 0.6%. The sub-index for small units also moved up by 1.2% m-omorph in September.

This slower rate of resale condo market price growth is likely due to higher-for-longer interest rates, which have resulted in sellers being unable to push up prices, as buyers resist paying higher amounts.

Since October last year, Singaporean buyers have accounted for 74.6% of resale condo purchases, with Singapore permanent residents taking up 21.4% and foreigners accounting for 3.7%.

In comparison to its recent peak in March this year, September saw a 37.4%, 46.2% and 86.7% decline in purchases by Singaporeans, Singapore PRs and foreigners respectively. The number of foreign resale purchases amounted to eight units, a 56% m-o-m decrease.

Residents of this executive condo can enjoy a range of leisure activities with the nearby Bukit Timah Nature Reserve, Dairy Farm Nature Park, Bukit Batok Town Park and Bukit Batok Nature Park, all of which are easily accessible from this residential development. The neighbourhood also provides a plethora of educational establishments, from kindergarten to universities. This is indeed an ideal place for those who are looking to make a great investment in Singapore real estate.

Flash figures showed that September saw a 28% m-o-m decline in non-landed private residential sales, compared to the 2.5% m-o-m growth in August. Huttons’ Senior Director of Data Analytics, Lee Sze Teck, believes that the high interest rate context and economic uncertainties will continue to suppress the resale condo market for the remainder of the year, with prices expected to at most increase by 8% in 2023.