Prices at non-central regions grow by 1.8% y-o-y: SRPI

SINGAPORE (EDGEPROP) - The overall Singapore Residential Price Index (SRPI) expanded for four straight months, growing at a steady pace, according to the SRPI for January and the flash estimate for February, which were released by the National University of Singapore (NUS).

The non-central regions enjoyed the strongest rate of growth in the past year, growing by 1.8% y-o-y, for a continued period of eight months since July last year.

Nicholas Mak, head of research and consultancy at ERA Real Estate, says the robust growth in the non-central regions was probably due to the healthy demand for private housing from HDB upgraders.

The flash estimate for February shows an overall increase of 1.1% y-o-y. The SRPI for small units had the lowest rate of annual growth, which increased by 0.2% y-o-y. Many of the small units, measuring 500 sq ft or smaller, have owners who rent them to tenants. Following weak leasing demand in 2020, the demand and prices of such small apartments did not grow as fast as the larger units.

Mak says that “the worst seems to be behind the Singapore residential resale property market” and he projects that the overall SRPI could increase by 3% to 6% for the whole of 2021, provided that the government does not roll out cooling measures.

Flash Estimate of SRPI for the Month of February 2021

Source: NUS Real Estate