National University of Singapore's Singapore Residential Price Index (SRPI), which tracks the monthly price changes in non-landed private properties showed that the prices increased 0.2% in July 2011 month-on-month. The prices increased 0.7% in June 2011 compared to May 2011. It looks like the seemingly endless property price increase is loosing steam probably mostly due to global economic uncertainties on the horizon.
Although the overall index increased 0.2%, central units excluding the small units fell 1.3% m-o-m while non-central units excluding the small units recorded a 1.2% increase m-o-m. Since 28 July 2011, Institute of Real Estate Studies separate small units and offers a small unit sub-index. IRES defines small unit as units with floor area of 506 square feet or below. Smaller units and their prices increased 1.4% m-o-m in July compared to 2.4% increase in June.
It looks like both Singapore Government Property Cooling measures and global economic uncertainties are taking effect despite the continuing zero interest rate - high inflation environment. Upcoming flood of private property supply, tightening in immigration policies (means less tenants competing) is also not helping the investor appetite for properties. Demand for small and non-central private properties will still be reduced more by new HDB income ceiling rules where the income ceiling for a first-time buyer is increased from 8,000 SGD per month to 10,000 SGD per month and 10,000 SGD to 12,000 SGD for executive condominiums.
"Overall prices of resale non-landed homes crept up marginally last month, largely fuelled by a stronger rise in prices of so-called shoebox units.
But even prices of these tiny homes, typically about 500 sq ft or less, rose at a more subdued pace of 1.4per cent, compared with 2.4 per cent in June.
A dip in demand has been observed for small homes, but prices are still rising, They increased at a more subdued pace of 1.4 per cent last month, compared with 2.4 per cent in June.
"
Source : Resale home prices post slower growth
Although the overall index increased 0.2%, central units excluding the small units fell 1.3% m-o-m while non-central units excluding the small units recorded a 1.2% increase m-o-m. Since 28 July 2011, Institute of Real Estate Studies separate small units and offers a small unit sub-index. IRES defines small unit as units with floor area of 506 square feet or below. Smaller units and their prices increased 1.4% m-o-m in July compared to 2.4% increase in June.
It looks like both Singapore Government Property Cooling measures and global economic uncertainties are taking effect despite the continuing zero interest rate - high inflation environment. Upcoming flood of private property supply, tightening in immigration policies (means less tenants competing) is also not helping the investor appetite for properties. Demand for small and non-central private properties will still be reduced more by new HDB income ceiling rules where the income ceiling for a first-time buyer is increased from 8,000 SGD per month to 10,000 SGD per month and 10,000 SGD to 12,000 SGD for executive condominiums.
"Overall prices of resale non-landed homes crept up marginally last month, largely fuelled by a stronger rise in prices of so-called shoebox units.
But even prices of these tiny homes, typically about 500 sq ft or less, rose at a more subdued pace of 1.4per cent, compared with 2.4 per cent in June.
A dip in demand has been observed for small homes, but prices are still rising, They increased at a more subdued pace of 1.4 per cent last month, compared with 2.4 per cent in June.
"
Source : Resale home prices post slower growth
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