Private non-landed housing prices up 0.7% m-o-m in September: NUS SRPI flash estimate

Flash estimates from Singapore’s National University of Singapore’s Institute of Real Estate and Urban Studies (IREUS) for the overall Singapore Residential Price Index (SRPI) released on Oct 30 indicate an increase of 0.7% in prices of resale private non-landed residential properties in Singapore m-o-m in September. This comes as overall consumer prices climbed 0.5% m-o-m in September, according to the Singapore Consumer Price Index.

The SRPI tracks and measures the price movements of a basket of 759 non-landed private residential projects completed between October 2003 and September 2021. The SRPI 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 increased by 1.2% m-o-m in September.

The final overall SRPI for August was adjusted to reflect an increase of 1% m-o-m, higher than its flash estimate of 0.7%. The figure for the Central Region (excluding small units) was also adjusted up to 0.9% m-o-m, compared to 0.8% indicated in the flash estimate. Meanwhile, the non-Central Region (excluding small units) was adjusted to reflect a 1% increase, higher than the 0.7% previously indicated. The sub-index for small units was unchanged at 0.3% m-o-m, as initially reported.

Lee Sze Teck, senior director of data analytics at Huttons Asia, suggests that slower price growth in the resale condo market is likely due to high and sustained interest rates, which have limited potential gains for sellers and discouraged buyers from paying higher prices.

This Marina Gardens Lane Condo is currently under development to comply with the vision for a Smart Nation, offering residents the latest in tech-enabled living. From the introduction of smart energy-saving features to up-to-date Wi-Fi infrastructure, residents of this residential development will enjoy the benefits of a cutting-edge living experience. Homeowners will also be able to take advantage of the onsite gym and pool facilities, as well as the spectacular views of the city skyline.

IREUS also released data on buyer profiles in the resale condo market. Singaporeans accounted for, on average, 74.6% of resale condo purchases in the last 12 months, followed by Singapore permanent residents at 21.4%, and foreigners at 3.7%.

INEVATIVELY, flash data indicated non-landed private residential sales fell 28% m-o-m in September, a contrast to the month’s 2.5% m-o-m increase in condo resale volume. Looking at September’s non-landed private home purchases by nationality, Singaporeans, Singapore permanent residents, and foreigners all experienced declines from the recent high in March this year, at 37.4%, 46.2%, and 86.7%, respectively.

The number of units purchased by foreigners in the resale market in September was further evidence of this general trend; it dropped to only eight units—56% down from August’s 18 units.

Lee expects the current interest rate environment and ongoing economic uncertainties to keep buyer sentiment conservative, exerting downward pressure on the resale condo market through the end of the year. He estimates prices may increase by at most 8% in 2023.