Resale prices of private homes in Singapore dipped 0.2 per cent in May, compared to the previous month’s 1.9 per cent price increase.
The fall was mainly due to price declines in non-central and small units.
This is according to the latest Singapore Residential Price Index (SRPI) flash estimates published by the Institute of Real Estate Studies at the National University of Singapore on Friday.
Prices of private homes outside the central region declined by 1.6 per cent in May, almost completely reversing the 1.8 per cent gains it recorded in April.
Meanwhile, prices of small units, defined as 506 square feet or less, also registered a dip of 1.3 per cent in May compared to a 1.4 per cent rise in April.
Analysts said the decline is most likely due to property market cooling measures that came into effect in January.
OrangeTee’s head of research and consultancy Christine Li said: “There were also some uncertainties over Fed Chairman Ben Bernanke’s May 22 comment on the possible tapering of QE and as a result, market sentiment was somewhat affected as stock market prices corrected sharply.”
Bucking the trend are prices of resale homes in the central region, which rose 1.5 per cent last month, down from the 1.9 per cent increase in April.
Source – CNA – 28 Jun 2013
It remains unclear whether the government’s seventh round of cooling measures have achieved its desired result of mitigating home price inflation, said a report from the National University of Singapore’s Institute of Real Estate Studies.
This is based on its latest Singapore Residential Price Index (SRPI) which monitors prices of completed non-landed private homes, excluding executive condominiums (ECs).
Resale prices of such homes rose 1.9 percent in April from March, building on the 1.1 percent gain seen in the previous month.
Meanwhile, prices increased across Singapore, with the non-central region recording the highest growth of 2.4 percent, a reversal of the 0.2 percent dip in March. Home prices in the central region also climbed 1.3 percent, extending the 2.8 percent gain the month before. Prices of small units (under 506 sq ft) rose 1.8 percent compared to the previous uptick of 0.8 percent.
“As with earlier policy measures, the latest cooling package announced in January apparently had only a temporary effect on the trajectory of housing prices,” the report said.
“Transaction volume and prices fell in February but have recovered since then, with the overall SRPI buoyed by the strength of the housing market in the non-central region … It is unclear that the seventh instalment of the cooling measures, described as the most comprehensive to date, has had the desired impact of mitigating house price inflation.”
Source – PRopGuru – 29 May 2013