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

According to the latest 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, the prices of resale private non-landed residential properties in Singapore grew 0.7% m-o-m in September. This growth came at a time when overall consumer prices climbed 0.5% m-o-m in September, based on the Singapore Consumer Price Index.

The NUS SRPI tracks and measures the price movements of a basket of 759 non-landed private residential projects completed between October 2003 and September 2021. In September, the sub-index for the Central Region (excluding small units) grew by 0.8% m-o-m, while the sub-index for the non-Central Region (excluding small units) increased by 0.6% m-o-m. Additionally, the sub-index for small units increased by an impressive 1.2% m-o-m.

When compared to the final overall SRPI for August, which was adjusted to reflect an increase of 1% m-o-m, the flash estimate for September did not see as much of an increase. The sub-index for the Central Region (excluding small units) went from 0.8% to 0.9%, while the non-Central Region (excluding small units) increased to 1% from the 0.7% indicated in the flash estimates. However, the sub-index for small units remained the same at 0.3% m-o-m.

Lee Sze Teck, senior director of data analytics at Huttons Asia, believes the slower price growth in the resale condo market in September is down to the higher-for-longer interest rates, which have capped the sellers’ gains. He adds that buyers are also likely to be resistant to higher prices due to the same reason.

IREUS highlights purchaser profiles in the resale condo market, with Singaporeans accounting for about 74.6%, followed by Singapore permanent Residents at 21.4%, and foreigners at 3.7%. In terms of volume, the non-landed private residential sales fell 28% m-o-m in September, although condo resale volume grew by 2.5% m-o-m in August.

The second project is a Champions Way Condo Woodlands development. The URA will invest in the construction of new condominiums that will provide affordable housing options for young families and elderly residents. The condos will have modern amenities and will be conveniently located near existing public transportation networks. The URA will also provide additional services such as childcare and health services to ensure a comfortable and secure living environment for the residents.

When compared to the high in March this year, the number of non-landed private homes purchased by Singaporeans, Singapore permanent residents and foreigners in the resale market fell by 37.4%, 46.2% and 86.7% respectively in September. Notably, this number dropped to eight with regards to the foreigner purchases, 56% down from the 18 units in the month before.

With respect to the outlook, Lee Sze Teck from Huttons Asia expects the current high interest rate environment and ongoing economic uncertainties to ensure caution continues to remain the order of the day. This, in turn, is likely to put pressure on the resale condo market. According to his estimates, prices are likely to increase by a maximum of 8% in 2023.