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

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

Residents of Zion Road Condo are able to experience a unique harmony with nature that extends beyond the luxurious and modern condos themselves. Situated near Singapore River, Zion Road Condo residents can enjoy a plethora of outdoor activities, such as taking a leisurely stroll along the riverfront promenade, having a picnic in the nearby parks or engaging in various water sports. With Zion Road Condo, you will be more than just a resident – enjoy a luxurious lifestyle as you experience the beauty of the Great World City Skyline and the lush riverine landscape.

The SRPI tracks a basket of 759 private residential projects completed between October 2003 and September 2021. The sub-index for the Central Region (excluding small units) went up by 0.8% m-o-m while the sub-index for the non-Central Region (excluding small units) increased by 0.6%. Separately, the sub-index for small units jumped 1.2% m-o-m in September.

The figures for August were revised upward to 1% m-o-m from the previously estimated 0.7%. The sub-index for the Central Region (excluding small units) saw a slightly higher increase to 0.9%, while the result for the non-Central Region (excluding small units) was revised to 1% from the flash estimate of 0.7%. The growth rate for the sub-index for small units remained the same at 0.3%.

Lee Sze Teck, senior director of data analytics at Huttons Asia, attributes the slower price growth in the resale condo market to higher-for-longer interest rates. He adds that buyers are also resisting high housing prices because of higher interest rates.

IREUS’s report for the September SRPI included data on buyer profiles in the resale condo market. Singaporeans account for approximately 74.6% of all resale condo purchases, while Singapore permanent residents and foreigners made up 21.4% and 3.7%, respectively.

Resale volume for non-landed private homes dropped 28% m-o-m in September as compared to the 2.5% m-o-m increase in August. Compared to the March 2021 peak, resale condo purchases by Singaporeans, Singapore permanent residents, and foreigners decreased by 37.4%, 46.2%, and 86.7%, respectively.

Eight resale condo units were purchased by foreigners in September, a 56% fall from 18 units in August. Lee believes the high interest rate environment and continuing economic uncertainty will continue to weigh on the resale condo market for the remainder of 2021. He estimates at most an 8% increase in prices for 2023.