The price index of private residential units larger than 506 sq ft in the central region climbed 1.8% m-o-m in May. It is the fastest rate of monthly increase since November 2017, when the price index rose by 1.9% m-o-m. Comparatively, the price index for larger units in the non-central region climbed 1.3% m-o-m in May 2018.

This is according to the latest flash estimates by the National University of Singapore for its Singapore Residential Price Index (SRPI). The central region is defined as the traditional prime districts 9, 10, 11, as well as districts 1 to 4 covering the financial districts and Sentosa Cove.

The overall SRPI is 9.3% higher y-o-y and prices of units in the central region are up by 10% y-o-y. Demand for resale homes in the core central region and city-fringe areas is “fuelled by liquidity from investors and homebuyers who sold their properties through collective sales”, says Nicholas Mak, executive director at ZACD Group. Demand is expected to remain healthy for the next 12 months, and the overall SRPI could increase by 9% to 13% for the whole of 2018, he adds.

Additionally, the supply of new resale homes in the central region is limited, and the stock of available completed homes could reduce slightly in the short-term as developments sold in collective sales are demolished, says Mak.