Latest figures from NUS’ Institute of Real Estate Studies has revealed that the Singapore Residential Price Index (SRPI) for the central region (excluding small units) declined 2.08 percent in August 2011 from its recent high in May 2011, and was down 0.7 percent from July.
With this in view, several market watchers believe that prices of completed private condos (excluding small units) and apartments in the central region may have peaked in May this year.
The central region covers Districts 1 to 4 (which include Sentosa Cove and the financial district) and the traditional prime housing districts of 9 to 11.
On the contrary, the non-central region witnessed the SRPI increasing 0.5 percent in August from July. Prices of small units in Singapore also hit record highs, posting a 3.1 percent increase.
The two indices were 29.5 percent and 22.7 percent higher in August, compared to their respective pre-Global Financial Crisis peaks in January and February 2008.
So far this year, the SRPI in the central region has grown only 3.2 percent and witnessed a 10.5 percent increase in the non-central region. The price index for small units has increased by 12.3 percent.
Some market watchers believe the revision of the income eligibility policy in August will draw off some demand for mass-market private condos.
“A lot of those buyers straddling in the S$10,000 to S$12,000 monthly household income bracket will have a much wider choice,” said an experienced property consultant.
Yesterday, IRES released the revised SRPI values for July.
The latest SRPI small index, which covers completed non-landed private homes in Singapore of up to 506 sq ft in size, fell 0.5 percent in July against a 1.4 percent increase for the month in the flash estimate announced in late August 2011.
“Our July flash numbers are based on caveats data captured up to 21 August. In the most recent data set that we obtained on 21 September, we found transactions for the month of July that were captured after 21 August,” said Lum Sau Kim, Associate Professor of IRES.
“These later caveats showed negative price change and as such, the revised July SRPI Small unit subindex was revised downwards.”
The revised SRPI in the central region (excluding small units) for July fell 1.3 percent month-on-month, while the index for the non-central region (excluding small units) grew one percent.
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