10:20 PM Jan 28, 2011

SINGAPORE - Private home prices rose by less than 1 per cent last month from the previous month, according to the latest National University of Singapore (NUS) Singapore Residential Price Index.

The Singapore Residential Price Index (SRPI) for all properties grew 0.9 per cent month-on-month to 155.5 points. Suburban home prices grew the most, with month-on-month growth coming in at 2.2 per cent to reach 154.8. However, homes prices in the central region fell 0.8 per cent month-on-month.

Still, for the whole year, prices of completed homes increased by 11.9 per cent.

The SRPI is a transactions-based index that tracks the month-on-month price movements of private non-landed residential properties in Singapore. Compiled by the NUS Institute of Real Estate Studies, the index covers only completed non-landed properties in the central region and non-central regions.

Analysts say demand in the secondary residential market remains buoyant. They say a healthy resale market is evidence of strong owner-occupier demand, considered by experts to be a barometer of genuine buying interest. Dr Chua Yang Liang, Head Of Research South-east Asia, Jones Lang Lasalle said: "It reflects the mood of the real market and the real economy, the secondary market, in other words. Less speculative, unlike new launches." Jo-Ann Huang

Source: www.todayonline.com

Published December 29, 2010


High-end condos can't keep pace with mass-market hikes
Prices in Non-Central region top pre-crisis high, Central region 3.7% below peak


By KALPANA RASHIWALA

(SINGAPORE) The latest flash estimates for November from the National University of Singapore (NUS) show that prices of non-landed private homes in Singapore's Central region (districts 1-4 and 9-11) have appreciated 7.9 per cent in the first 11 months of this year from end-2009.


Over the same period, the Singapore Residential Price Index (SRPI) sub-index for the Non-Central region rose at a faster clip of 12.9 per cent. As a result, the overall SRPI increased 10.7 per cent year to date.

SRPI, compiled by the NUS Institute of Real Estate Studies, covers only completed properties.

The Central region sub-index for November is still 3.7 per cent shy of its pre-Global Financial Crisis peak in November 2007. On the other hand, the sub-index for the Non-Central region in November has already surpassed its January 2008 pre-crisis peak by 15 per cent. As a result, the overall November 2010 index is about 7.6 per cent above its November 2007 pre-crisis high.

The latest indices from NUS tally with what property agents have been reporting from the ground - that mass-market condo prices have scaled fresh records this year while prices of prime and luxury condos have yet to touch their 2007 records.

DTZ executive director (consulting) Ong Choon Fah said that entry-level suburban condos have enjoyed strong demand this year, riding on upgrader demand amid a buoyant HDB resale market.

'In addition, the trend of developing a higher proportion of smaller units in private residential projects has spread from the prime districts (where rental demand is stronger) to the suburbs - and this has also helped to boost sales of mass-market projects by making the lump sum investment more palatable to buyers.'

Mrs Ong also pointed out that these days, developers of suburban projects are offering some of the innovative features which in the past were available only in prime district projects - such as sky gardens.

Knight Frank chairman Tan Tiong Cheng said that the increase in high-end condo prices had not been so sparkling this year due to more subdued foreign buying compared with the previous bull run in 2007.

'The foreign buying back then was from a wider spectrum. These days, buyers from the West, Middle East and Russia seem to be out of the equation. Also Western bankers were a significant buying contingent in 2007 but post-crisis, banks are less generous with remuneration.'

Month on month, the overall SRPI dipped 0.2 per cent in November. The sub-index for the Non-Central region too eased 0.3 per cent but the Central region sub-index was flat.

Since the last round of property cooling measures on Aug 30, the Central region sub-index has eased 0.4 per cent while the non-Central index has strengthened 0.9 per cent. As a result, the overall index in November was 0.4 per cent ahead of the August level.

Despite being proven wrong with their earlier forecast of stronger price appreciation for high-end condos compared to mass-market ones for 2010, analysts continue to predict the same trend in 2011, pointing to the already substantial price hikes posted in the mass-market segment. And if the government succeeds in taming HDB resale prices, that will also have an impact on upgrader demand for entry-level condos. Also, any interest rate hike, as well as further property cooling measures, is likely to make a bigger dent on demand in the mass-market segment than on upmarket condos

Source: www.businesstimes.com.sg

Published November 30, 2010

Non-landed private home prices fall 0.7% in October
Drop was caused by falling prices in the central and non-central locations


By UMA SHANKARI


PRICES of non-landed private homes fell 0.7 per cent in October, according to the monthly index compiled by the National University of Singapore (NUS).


NUS' Singapore Residential Price Index (SRPI) shows overall home prices fell last month, after having climbed 1.1 per cent per month in both August and September.

The last time the overall index fell was in July, when it dipped 0.1 per cent. NUS has been compiling the index since March this year.

October's drop was caused by falling prices in the 'central' and 'non-central' locations.

Home prices in central locations fell 1.1 per cent last month, after climbing 0.9 per cent in September. The central SRPI last fell in July, by 0.8 per cent.

And in a sign that the slowdown in the property market is now spreading to the mass market segment, the non-central SRPI dipped 0.5 per cent in October - the first time it has fallen since NUS started compiling the index. The non- central SRPI rose 1.3 per cent in September.

Year-to-date, the overall SRPI is up 10.7 per cent. Non-central prices are up 12.8 per cent, while prices in the central region have climbed a smaller 8.1 per cent.

The October flash estimate for the central region is now 3.6 per cent below its pre-financial crisis high in November 2007.

However, for the non- central region, the latest index has surpassed its pre- crisis peak in January 2008 by 14.9 per cent.

As a result, the overall SRPI flash estimate for October is 7.6 per cent above its November 2007 high.

Looking ahead, analysts expect mass market home prices to moderate further, given the impending large supply of development sites being offered for sale by the government.

'Most of the sites in the H1 2011 Government Land Sale programme will inject supply to the mass market segment, and this may rein in mass market home prices,' said Christine Sun, senior manager at Savills Research & Consultancy.

But it will have little impact on the mid-tier and luxury home prices, which could rise further, given the positive economic outlook for next year, she said.

DMG & Partners Research analyst Brandon Lee, for example, expects a 10 per cent fall in mass market home prices due to supply and continued policy risks.

NUS' index, which is compiled by the Institute of Real Estate Studies, was launched to serve as a resource for developing property derivatives in Singapore.

It is computed using the market values of a basket of completed properties.

Uncompleted projects are not included in the basket, as price movements for such projects can be different from those in the rest of the market.

But the impact of new launches on the prices of completed properties in the vicinity is factored in.


Source: businesstimes.com.sg

NUS flash estimate offers a snapshot before government's cooling measures

Published September 29, 2010
By KALPANA RASHIWALA


(SINGAPORE) The latest flash estimates from National University of Singapore (NUS) show that prices of non-landed private homes remained flattish in August compared with July. This period would not have shown up the impact of the government cooling measures, which were announced on Aug 30.

The Singapore Residential Price Index (SRPI), compiled by the NUS Institute of Real Estate Studies, covers only completed properties.

NUS's overall price index for non-landed homes for August rose 0.8 per cent month on month, compared with a month-on-month drop of 0.1 per cent for July. The June index was up 0.6 per cent over May. In May, the index appreciated 2.4 per cent.

Knight Frank chairman Tan Tiong Cheng said the numbers show that the market for resale apartments/condos had stabilised since June, even before the Government announced its latest set of cooling measures.

'Much of the sales in the primary market (developer sales) in the past few months have been driven by shoebox units. So the volume of developer sales was pretty strong in July and August but if you look at the absolute dollar quantum of units sold, it's not increasing,' he explained.

NUS' sub-index for Central region, which covers a basket of properties in districts 1-4 and 9-11, was unchanged in August, following a 0.8 per cent month-on-month drop in July. The sub-index for Non-Central region rose 1.5 per cent in August from the preceding month, after a 0.5 per cent increase in July.

Since the end of last year, all three indices have appreciated, to the tune of 10 per cent for the overall index, 7.6 per cent for the Central region and 11.8 per cent for the Non-Central region.

The August flash estimate for Central region is still 4 per cent below the pre-crisis high in November 2007. However, for the Non-Central region, the latest index has surpassed its respective pre-crisis peak in January 2008 by 13.9 per cent. As a result, the overall SRPI flash estimate for August is 6.9 per cent above its Nov 2007 high.

The SPRI is compiled based on a basket of properties for the base period Dec 2009 comprising 74,359 units in 364 projects within the 26 postal districts completed between Oct 1998 and Sept 2009. The basket is to be reviewed every two years.

Market watchers are awaiting the government's release of flash estimates for the Q3 2010 prices indices for private homes and HDB resale flats on Friday for an idea of the impact of the recent cooling measures.

Meanwhile, the soft launch of Vacanza@East yesterday is said to have drawn an impressive turnout at its showflat at Lengkong Tujoh in the Kembangan area. Initially two blocks or 141 units were released but sources say that eventually, the entire project, which has 473 units in seven blocks, was made available. The average price is said to be about $1,090 psf for the 12-storey freehold condo, which faces the Pan Island Expressway.

Its developer, Hoi Hup Sunway Property, declined to provide a sales update.

Source: http://www.businesstimes.com.sg