SINGAPORE (EDGEPROP) - The Singapore Residential Price Index (SRPI) released by the National University of Singapore (NUS) for October and the flash estimate for Nov 2020, showed a broad-based recovery in private residential resale property prices last month.
The price indices in all the different market segments increased marginally last month, compared to the preceding month. In October, the overall SRPI and Central SRPI decreased by 0.1% and 0.8% m-o-m respectively.
Compared to the corresponding period in 2019, all the four SRPI increased between 0.6% and 1.1% y-o-y in November, says Nicholas Mak, head of research for ERA Realty, which illustrates that “resale property prices have increased above the pre-pandemic level a year ago”.
“As this eventful year draws to a close, confidence among real estate investors and homebuyers have recovered,” adds Mak. Another indication of the recovery in the residential resale market is the growth in the resale transaction volume this October and November by 52.2% and 35.1% y-o-y respectively (See Table).
The resale volume in October and November were several times higher than the monthly resale volume during the circuit-breaker months too, notes Mak. In April and May, 303 and 150 resale transactions were recorded in the private non-landed resale residential market respectively.
“In November, the resale property price indices across all four markets expanded on an even keel and the overall SRPI could end the year about 0.5% to 0.9% higher than in 2019,” predicts Mak.
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“Should the number of new residential projects launched in 2021 be fewer than those launched this year, some homebuyers could turn to the resale market,” Mak points out. This could spur the growth in resale property prices, propelling the overall SRPI to increase by 4% to 6% next year, he adds.