Prices of small condo units up again

[SINGAPORE] Prices of small completed private apartments (up to 506 sq ft) climbed for the second month in a row to hit a new peak in August, according to the latest flash estimate from the National University of Singapore (NUS).

Market watchers agree that the data - the Singapore Residential Price Index (SRPI) for small units rose one per cent in August, following a 2.1 per cent climb in July - suggests that buyers are gravitating towards smaller homes.

Given that the absolute quantum of these smaller format units are relatively affordable even after factoring in the effect of the Total Debt Servicing Ratio (TDSR), it is not surprising that they are favoured by buyers and entry-point investors, said Donald Han, managing director of Chesterton Singapore.