SINGAPORE (EDGEPROP) - The National University of Singapore’s (NUS) Singapore Residential Price Index series (SRPI) shows that in March, all the price indices headed into negative territory because of the Covid-19 pandemic and the government’s measures to control it.
The main transactions-based index, the SPRI Overall, fell by 0.6% m-o-m while the SPRI Central (excluding small units) dropped by 1.1% m-o-m, according to NUS’ data released on April 28. NUS has also revised its SPRI Overall index for February to an increase of 0.1% m-o-m.
“Based on the revised SRPI, the overall SRPI and the price index central region were still expanding in February 2020. By March, all the price indices headed south due to the effects of the Covid-19 outbreak. Most of the price gains made by the SRPI Central in January and February were given up in March 2020,” says Nicholas Mak, head of research & consultancy at ERA Realty.
While the effects of the pandemic and the government measures will be felt throughout the property market, Mak says “the [private] resale market could feel the chill more than the primary market as most individual property owners would not have the financial strength of developers”.
He says that property owners who experience financial difficulties at this time may be forced to sell their properties in a weaker resale market at reduced prices. Overall, the SPRI Overall index could fall by 4-8% for the whole of 2020, says Mak.
The SRPI is the index for the overall non-landed residential market in Singapore and published in the form of value-weighted indexes. Two sub-indexes are also produced for the Central and non-Central regions. The Central region sub-basket comprises properties within a basket of properties in Districts 1-4 and 9-11, while properties in the other postal districts are in the non-Central region sub-basket.
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