SINGAPORE (EDGEPROP) - The National University of Singapore’s Singapore Residential Price Index Series (NUS SRPI) reveals that the main index, SRPI Overall fell 0.6% m-o-m in April 2020.
On a y-o-y basis, SRPI Overall fell 1.2%, according to Nicholas Mak, head of research & consultancy at ERA Realty.
The SRPI data shows that property prices have declined between 0.3 and 1.2% m-o-m for all units in April except for small units (defined as floor area of 506 sq ft or less). The price index for small units increased 1% m-o-m.
Source: NUS SRPI (Reflective of transactions received as at 21 May 2020)
Mak says: “Private residential resale activities slowed down drastically in April 2020 due to the partial lockdown to contain the spread of Covid-19. Based on residential caveats, the number of secondary market caveats in April was about the half of the volume in March 2020.”
The rate of decline of the SRPI in April is slower than in March. This could be due to fewer units transacted in April. The biggest decline in April was detected in SRPI Central region, excluding small units.
Looking ahead, Mak believes that the Central region could suffer a bigger decline as many foreign buyers are restricted from visiting Singapore to view the properties.
Mak says that as the “circuit breaker” continues, the SRPI is likely to continue decreasing in May. The overall SRPI could decline by 5% to 8% y-o-y for the whole of this year, which would be the fastest rate of decline since 2014, he adds.
Source: SRPI (Reflective of transactions received as at 21 May 2020)
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