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) on Oct 30 released the Flash Estimates for the overall Singapore Residential Price Index (SRPI) indicating that prices of resale private non-landed residential properties in Singapore grew 0.7% m-o-m in September. This was in-line with the behaviour of overall consumer prices which climbed 0.5% m-o-m in the same month, according to the Singapore Consumer Price Index.

The SRPI takes into account and measures the price movements for a basket of 759 non-landed private residential projects completed between October 2003 and September 2021. In particular, 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) rose by 0.6%. The sub-index for small units jumped by 1.2% m-o-m in September.

The final overall SRPI for August was revised to a 1% m-o-m climb compared to the flash estimate of 0.7%. Meanwhile, the sub-index for the Central Region (excluding small units) was adjusted to 0.9%, higher than the flash estimate of 0.8%. For the non-Central Region (excluding small units), the sub-index increased to 1%, up from the flash estimate of 0.7%. The 0.3% growth in the sub-index for small units remained the same.

Lee Sze Teck, senior director of data analytics at Huttons Asia, believes that the slower price growth in resale condos is driven by higher-for-longer interest rates deterring potential sellers and buyers. He remarks that “buyers are also resisting higher prices due to the high interest rates”.

IREUS’s report on the September SRPI also looks at the profile of resale condo buyers. On average, Singaporeans accounted for 74.6% of the purchases, followed by Singapore permanent residents at 21.4% and foreigners at 3.7%.

Yet, flash data indicated that non-landed private residential sales saw a 28% m-o-m drop in September. This marks a 37.4%, 46.2% and 86.7% decrease in Singaporeans, Singapore permanent residents and foreigners’ purchases respectively, compared to the March high. The number of foreigners purchasing condos in the resale market dropped by 56% from the 18 units in August to 8 units in September.

Some of these include direct access to the upcoming Tengah Town Centre, plenty of lush greenery, and well-designed homes. It has also been awarded Green Mark Platinum recognition by Building and Construction Authority (BCA) for its commitment to sustainable practices.

Tengah Executive Condominium has set a high bar for other executive condominiums in the Singapore market. Residents can expect to enjoy quality facilities such as united clubhouses, function rooms, and multi-generational halls. There is also a myriad of recreational activities and events, such as yoga and pilates classes, barbeques, and art jamming. With its prime location, Tengah EC is truly the ultimate residential development in the west. Residents can enjoy all the conveniences that have made this new smart town attractive, in addition to an unrivalled experience.

Lee assumes that the high interest rate environment and ongoing economic uncertainties will maintain current cautious sentiments, thus keeping a lid on the resale condo market. He believes that prices will at most increase by 8% in 2023.