Private housing resale prices grow 0.1% m-o-m in February: NUS SRPI
By Nadine Yong
/ EdgeProp Singapore |
The Singapore Residential Price Index (SRPI) increased by 0.1% m-o-m in February, easing from the 0.5% growth logged in the previous month (Photo: Samuel Isaac Chua)
SINGAPORE (EDGEPROP) - The Singapore Residential Price Index (SRPI) increased by 0.1% m-o-m in February, easing from the 0.5% growth logged in the previous month, based on flash estimates released on March 29.
The SRPI, tracked by the Institute of Real Estate and Urban Studies (IREUS) at the National University of Singapore (NUS), measures price movements of private non-landed residential properties in Singapore.
While the SRPI was still higher in February compared to last year, the m-o-m slowdown can be attributed to weaker investor sentiment stemming from prospective interest rate hikes and the Russian invasion of Ukraine, says Nicholas Mak, head of research & consultancy, ERA Realty. Two categories which rely more on investor demand - prime properties in the central region and smaller housing units - showed a m-o-m decline of 0.8% and 0.1% respectively in February.
In contrast, properties in non-central region grew the most, up 0.7% m-o-m, reflecting a “healthy demand from HDB upgraders” according to Mak.
He anticipates a two-tier property market may emerge in the coming months. On the one hand, the private housing market will likely remain supported by demand from HDB upgraders and owner-occupiers whose buying power is less affected by market turbulence. A record number of about 35,0000 HDB flats will reach the end of their Minimum Occupation Period (MOP) this year, meaning more HDB owners will qualify to upgrade to private housing. (Find HDB flats for rent or sale with our Singapore HDB directory)
Secondly, property investors could be bidding their time to enter the market at better prices. Therefore, even if property prices were to weaken, it will not be a long-term drop, as investors will buy the dip and thus prop up prices, says Mak.
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