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Private non-landed housing prices grow 0.5% m-o-m in April: NUS SRPI flash estimate

By Nicholas Lam

/ EdgeProp Singapore |

May 28, 2024 4:21 PM SGT

Flash estimates of the Singapore Residential Price Index (SRPI) published on May 28 indicate that that condo prices grew by 0.5% from March to April. (Photo: Samuel Isaac Chua / EdgeProp Singapore)

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Prices of private non-landed residential properties inched up in April, reversing from the decline recorded in March, according to the Institute of Real Estate and Urban Studies (IREUS).

Flash estimates of the Singapore Residential Price Index (SRPI) published by IREUS on May 28 indicate that that condo prices grew by 0.5% m-o-m from March to April this year. The SRPI tracks the month-on-month movement of private non-landed residential properties in Singapore based on a basket of 818 completed condo developments.

The increase in prices for April comes as overall consumer prices climbed 0.1% over the same period, according to the Singapore Consumer Price Index.

The SRPI sub-index for the Central Region (excluding small units) grew by 0.6% m-o-m in April, while the sub-index for the non-Central Region (excluding small units) increased by 0.5% over the same period. The sub-index for small units inched up 0.1% during that time.

Eugene Lim, key executive officer at ERA Singapore, observes that prices in the Central region rose at a faster pace in April compared to the non-Central Region and small unit segment due to buyers snapping up units at projects including Cuscaden Reserve, Klimt Cairnhill and Watten House.

On the flip side, he attributes the relatively slower increase in prices of small units – which IREUS defines as units measuring 506 sq ft and below – to a lower transacted volume of such units. “Small units accounted for only 8% of the transactions in April,” Lim notes, adding that buyers may be gravitating more towards larger two-bedroom units which offer more flexibility.

The final overall SRPI index for March was adjusted to reflect a 0.2% m-o-m decrease, a slightly steeper drop than the 0.1% slip indicated by the flash estimate.

The final sub-index of the Central Region (excluding small units) changed to reflect a 0.1% decrease from initial estimates of a 0.4% drop. The sub-index of the non-Central Region (excluding small units) was revised to a decrease of 0.3%, compared to the flash estimate which indicated no changes in the sub-index.

Meanwhile, the final sub-index for small units reflected a steeper 0.2% decline from its flash estimate of 0.1% decline.

Looking ahead, ERA’s Lim believes condo resale prices are likely to continue increasing for larger units in the non-Central Region, driven by more new launches projected in 2024. “Recently completed units have uplifted prices in the resale market, but the competition for buyers could help keep the growth of resale prices in check,” he adds.

In contrast, he expects demand for Central Region condo units to be low due to foreign buyer demand being dampened by the high Additional Buyer’s Stamp Duty rate of 60%. Overall, ERA forecasts resale home prices to grow by 4% to 6% in 2024.

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