Private resale home prices continue to rise in October

Private resale home prices rose by 1 per cent in October, marking a similar rate of increase seen in September.

The figures are part of the latest Singapore Residential Price Index (SRPI) flash estimates published by the Institute of Real Estate Studies at the National University of Singapore (NUS IRES).

In its report, NUS IRES said that property cooling measures have had “transient effects” on housing prices.

However it acknowledged that the measures have helped reduce volatility in prices.

It also added that there has been no significant decrease in overall home prices despite the introduction of new measures in October to cap tenures for bank property loans.

The SRPI also showed that the number of private resale homes sold in October rose compared to the month before, based on data captured as at 21 November.

The report also found prices of small units to be more volatile compared to other segments for the month of October.

The SRPI for small units, or units that are 500 square feet or less, rose by 0.6 per cent in October.

This is down from the 2 per cent increase in September.

The contraction has been attributed to new guidelines announced by the government to control the proliferation of shoebox apartments in Singapore.

NUS IRES also expects the guidelines to continue to moderate prices and sales volume of small units going forward.

Meanwhile, the SRPI for private homes in the central area rose by 0.9 per cent in October, compared to the 1 per cent increase in the previous month.

Prices of units in the non-central region went up by 1 per cent in October, similar to the rate of increase in September.

Source : Channel NewsAsia – 28 Nov 2012

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