Apartment prices in Central Region fare better

LATEST data from the National University of Singapore (NUS) provides yet another piece of evidence of greater price resilience of late in non-landed private homes in prime locations compared with other segments.

June flash estimates for its Singapore Residential Price Index (SRPI) series – which tracks prices of completed private apartments and condos – showed that the subindex for Central Region (excluding small units) has climbed 0.7 per cent month on month.

This compares with a 0.4 per cent rise in the subindex for Non-Central Region (excluding small units) and a 0.2 per cent gain in the subindex for small units of up to 506 square feet islandwide over the same period. The Overall SRPI was up 0.6 per cent.

The Central Region is defined as Districts 1-4 (including the financial district and Sentosa Cove) and the traditional prime residential districts of 9, 10 and 11 by the NUS’s Institute of Real Estate Studies, which minted the SRPI series.

Based on the revised index values for May 2016, the Central Region subindex fell 0.6 per cent month on month.

Still, this was smaller than the decreases of one per cent in the Central Region, 1.1 per cent for small units islandwide and 0.9 per cent in the overall index.

Comparing the latest June 2016 flash estimates against a year ago, a similar trend emerges. The 1.8 per cent contraction in the Central Region subindex was smaller than the falls of 2.9 per cent in Non-Central Region, 4.1 per cent for small units islandwide and 2.4 per cent in the overall index.

Eugene Lim, key executive officer at ERA Realty Network, commented: “Luxury properties have seen increased demand from buyers in recent months, as buyers look to invest for the longer term.

“Given that our luxury property market was depressed for some time, it has become more attractively priced vis-a-vis other major cities.”

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