Private non-landed house prices increased 0.7% year on year in August

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The Institute of Real Estate and Urban Studies (IREUS) has released on September 28, published its Singapore Residential Price Index (SRPI) for the month of August. The SRPI measures a range of 759 private residential non-landed projects that were completed between October 2003 through September 2021.

The latest estimates from the SRPI that measure the prices of private property that is not landed properties in Singapore show that prices rose 0.7% m-o-m in August. This is despite the fact that the overall cost of living increased 0.9% m-o-m last month according to data from the Singapore Consumer Price Index.

The SRPI sub-index for the Central Region (excluding small units) increased to 0.8% m-o-m in August The sub-index for non-Central Region (excluding tiny units) was up 0.7% over the same time frame. The sub-index for small units grew to 0.3% for the period.

The overall index revised for July was revised to reflect the 1.1% m-o-m increase, little more than the estimate from the flash survey which showed the index was growing one%.

This sub-index of the Central Region (excluding small units) in July was the same as the flash estimate which indicated the increase to 1.2% m-o-m. For the region that is not Central the sub-index was recalculated to reflect the 1.1% decrease, a slight increase over the growth in the flash estimate of 1% per month. In contrast, the sub-index for tiny units during July was recalculated to reflect the 0.4% m-o-m increase, as opposed to the estimation which was 0.2% growth.

Mark Yip, CEO of Huttons Asia, observes that the resale condominium market profited from the booming HDB market as well as the lack of new projects launching in August. “A record-breaking 54 HDB flats were sold for one millions of dollars, or greater, which gives HDB upgraders with the funds to purchase a resales condo,” he adds.

Regarding buyer profiles, Singaporeans accounted for 74.2% of resales of private residences not owned by land during the last twelve months. Singapore permanent residents accounted for 21.6% of such transactions while foreigners comprised around 3.9%.

In the report, IREUS stated that resales private homes that were not landed decreased by 8.9% in August, in contrast to an increase by 1.8% in July. “Compared to the previous peak in March of this year the total number of private homes that were not landed through Singaporeans, Singapore residents and foreign buyers in the resale market decreased to 25.6%, 35.7% and 76.7% respectively in August 2023,” the report adds.

“Moving towards the future, the booming HDB market could continue to help the resale market for condos. New PRs and new citizens could be a factor in the demand. But the uncertain economic outlook as well as the high interest rates can dampen the price increases,” comments Yip.