Central Region Condo Prices Increased

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After a significant increase in prices of central region completed apartments in June, another increase was seen in July. This has prompted experts to predict that it could be hitting low soon. In June a 0.9% increase in prices was seen and in July the prices increased by 0.7%. In spite of the increase, they are still down by 1.3% from the previous year.

NUS Singapore Residential Price Index (SRPI) reported that even the non-central were down by 2.3% in the past year, even the non-central did not fare well.

After a 0.7% upsurge in June, the prices of completed apartment’s islandwide surge again by 0.2% last month. The reported increase in July was due to the central region apartment’s better performance in the market that triggered the 0.2% fall in the non-central region.

Although the prices of small apartments were unaffected in the previous month, they were the most affected and have recorded a 4.4% decline according to Mr. Ong Teck Hui, research director of JLL national.  

Mr. Hui also mentioned that the reason for the price drop is due to the less demand for small resale units. 78% of the total sales are accounted for the new sales of small units within 12 months up to the end of July. He also noted that the new projects offer better opportunities that meet the standards of small-unit buyers, thus it keeps them away from the resale market.

The data presented by NU SRPI in the central region was supported by other industry observers.

According to Kelvin Fong PropNex Executive Director, “the prices of the small units have been stabilized and for two years the people have been on the sidelines. Others are still waiting for the prices to go down even further and some are already back into the market.

He also mentioned that the developers are thinking of ways to attract buyers particularly those with projects in District 9 and 10. Although the pick-up is mainly across the board it is strongest in the central region.

Kelvin Fong’s sales team comprising of 2,600 agents has increased by 50% within a year. The Hungry Ghost Festival has affected the sales this month but it is much better as compared to last year.

On the other hand, Ms. Jennifer Chia TSMP Law Corporation Executive Director and Head of Corporate Real Estate noted that there are still some people who are interested in investing on the luxury property for long term. Most of these investors have connections with Singaporeans permanent residents or prefers to live in Singapore in the future. Also, Ms. Chia noted that those who have the means to buy did not want to get surprised in case there are some changes on the Additional Buyer’s Stamp Duty.

At present, the Government has been showing signs that they have no plans of lifting the cooling measures in the coming months. They agreed not to postpone it any longer.