Prices of non-landed resale homes registered slower growth in July, primarily driven by the stronger price increase of shoebox units.
But even the prices of these small units, normally around 500 sq ft or below, grew at a slower rate of 1.4 percent, compared with 2.4 percent in June.
The Singapore Residential Price Index (SRPI), which monitors sales of completed non-landed projects, showed an overall price increase of 0.2 percent, down from the 0.7 percent registered in June.
Petra Blazkova, Head of Singapore and Southeast Asia Research at CB Richard Ellis (CBRE), noted a decrease in the demand for small units.
The decline in interest, however, might be due to the economic crisis in Europe and the United States, Blazkova added.
“In the long term, we will continue to see more interest, possibly until 2012. The supply of such homes remains steady and smaller units are seen as a more affordable class of property for those who are interested in putting their money in property,” she said.
Meanwhile, suburban home prices were comparatively stable, climbing 1.2 percent, while home prices in central districts dropped 1.3 percent.
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