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

The primary areas of concern are congestion, safety, and convenience.

The Holland Drive Condo region is set to benefit from the URA Master Plan. Residents will enjoy greater transport infrastructure that reduces congestion and increases safety and convenience. Additionally, pedestrian pathways can be developed, and public transit options may be expanded. The goal is to create a seamless and stress-free commute for the local community.

Flash estimates for the September Singapore Residential Price Index (SRPI) released by the National University of Singapore’s Institute of Real Estate and Urban Studies (IREUS) indicated that prices of resale private non-landed residential properties rose 0.7% m-o-m. This increase occurred alongside overall consumer prices, which climbed 0.5% m-o-m in September according to the Singapore Consumer Price Index.

The data pertained to 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) rose by 0.8% m-o-m while the sub-index for the non-Central Region (excluding small units) climbed by 0.6%. The figure for small units increased by 1.2%.

Upon adjusting for August’s figures, the SRPI overall increased by 1%, up from an earlier flash estimate of 0.7%. The sub-index for the Central Region (excluding small units) increased to 0.9%, marginally higher than the flash estimate of 0.8%. The sub-index representing the non-Central Region (excluding small units) was adjusted to reflect a 1% m-o-m increase, while the final figure for small units matched the flash estimate of 0.3%.

Lee Sze Teck, senior director of data analytics at Huttons Asia, attributed the slower price growth in the resale condo market to higher-for-longer interest rates that have “capped gains for sellers”. He indicated that “buyers are also resisting higher prices because of the high interest rates”.

In terms of volume, non-landed private residential sales fell 28% month-on-month in September, while condo resale volume increased 2.5% in August. Over the past 12 months, Singaporeans accounted for 74.6% of resale condo purchases, followed by Singapore permanent residents at 21.4%, and foreigners at 3.7%.

In September, the number of non-landed private home purchases by Singaporeans, Singapore permanent residents and foreigners in the resale market dropped by 37.4%, 46.2%, and 86.7% respectively compared to the high seen in March. The September figure for condo units purchased by foreigners on the resale market was eight units, 56% less than the 18 units in August.

Lee believes that the high interest rates and economic uncertainties will continue to contribute to cautious sentiments that will possibly put downward pressure on the resale condo market for the remainder of the year. He forecasted at most 8% price increase in 2023.