Suburban condo prices resilient

The latest Singapore Residential Price Index (SRPI) from the National University of Singapore (NUS) revealed that prices of completed apartments larger than 506 sq ft in the Non-Central Region (NCR) or suburban areas were the most resilient from the start of the year to May.

Small units islandwide were the second more resilient segment while large apartments in the Central Region fared the worst during the period.

Overall, the SRPI for May was 1.5 percent higher than in the previous month, double the 0.7 percent month-on-month hike seen in April.

The SRPI, which tracks prices of completed condos and apartments, also showed that the sub-index for the Non-Central Region (NCR), except for small units, grew by 1.9 percent from December 2011 to May this year.

On the other hand, the sub-index for small units (up to 506 sq ft) island-wide slipped 0.1 percent over the same period.

But in the Central Region, the sub-index fell by two percent, excluding small units. The area covers districts 1 to 4, including Sentosa Cove and the financial district, as well as the traditional prime districts of 9, 10 and 11.

“The index movements pretty much reflect what we’ve been seeing in the market in the past few years,” said Ong Choon Fah, Chief Operating Officer at DTZ SE Asia.

“In suburban locations, because developers have been launching new projects at prices higher than those of existing, completed projects in the vicinity, it has an effect on prices of the completed properties as well.”

source : CNA – 2012 Jun 29

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