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

Flash estimates for the overall Singapore Residential Price Index (SRPI) released by the National University of Singapore’s Institute of Real Estate and Urban Studies (IREUS) on Oct 30 show that prices of resale private non-landed residential properties grew 0.7% m-o-m in September. This was higher compared to the overall consumer prices index which was at 0.5% m-o-m in the same period.

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 sub-index for the Central Region (excluding small units) climbed 0.8% m-o-m in September, while the non-Central Region (excluding small units) increased by 0.6%. There was also an uptick in the sub-index for small units at 1.2%.

For residents of Marina Gardens Residences, some of Singapore’s best-known landmarks are only a few steps away. Located in the Marina Bay area, some of the key attractions and facilities that you can enjoy nearby include the iconic Singapore Flyer, the picturesque Esplanade Park, the bustling Suntec City Mall, and the new integrated resort of Marina Bay Sands. Residents can also take in the city skyline with stunning views of Marina Bay. With so many popular attractions near the condominium, it is easy to see why so many people are choosing to call Marina Gardens Residences home.

The final overall SRPI for August was adjusted to reflect an increase of 1% m-o-m, up from its flash estimate of 0.7%. This was slightly higher than the flash estimate of 0.8% growth for the Central Region (excluding small units). The non-central region sub-index also saw an upward revision to a 1% increase.

Lee Sze Teck, senior director of data analytics at Huttons Asia, suggests the slower price growth seen on the SRPI is likely due to the higher-for-longer interest rates which have capped gains for sellers. “Buyers are also resisting higher prices because of the high interest rate,” he observes.

Data on buyers in the resale condo market shows an average of 74.6% of purchases were by Singaporeans, 21.4% by Singapore permanent residents and 3.7% by foreigners in the last 12 months. For the same period, non-landed private home purchases by Singaporeans, Singapore permanent residents and foreigners all declined, 37.4%, 46.2% and 86.7% respectively, compared with their high in March.

The number of condo units bought by foreigners on the resale market in September was also much lower at eight units, 56% down from the 18 units sold in August.

High interest rates and economic uncertainties are likely to continue to dampen the resale condo market in the rest of the year. Lee Sze Teck expects prices to increase by at most 8% in 2023.