Prices of completed condos dip 0.7% in November: NUS

Singapore

PRICES of completed private apartments and condominiums slipped 0.7 per cent in November from a month ago.

This is based on the flash estimate by National University of Singapore (NUS) for its overall Singapore Residential Price Index (SRPI) released on Wednesday.

Faring the worst during the month were completed units (excluding small units of 506 square feet or below) in the Central Region, which fell 0.8 per cent during the month, followed by a 0.7 per cent price drop for completed units outside this region.

These declines were steeper than the revised 0.3 per cent price dips in both regions in October.

The Central Region is defined as Districts one to four (including the financial district and Sentosa Cove) and the traditional prime residential Districts 9, 10 and 11 by the NUS's Institute of Real Estate Studies, which minted the SRPI series.

According to the sub-index for small units of 506 square feet or below, such units resumed their price fall, slipping 0.1 per cent in November after a 0.5 per cent rise in October.

The revised SRPI for October showed a 0.2 per cent dip in overall prices of completed non-landed residential units.

R'ST Research director Ong Kah Seng noted that the price decline for completed units is well within expectations amid a slowdown in transactions in the quiet year-end festive period when many property agents, owners and buyers may be away for vacation.

"It seems that price recovery or confirmed price increase for resale properties is still far and not quite visible yet," he said, explaining that cautious buying sentiments still prevail and buyers remain highly selective.

"The long winding road of gentle price decline or stagnation for private residential property prices is set to continue," Mr Ong said.

ERA Realty key executive officer Eugene Lim noted that the small units have been the better-performing segment in recent months. "This could be because they are currently at a very attractive price point, and are relatively affordable to buyers."

Official indices of the Urban Redevelopment Authority showed that prices and rents of private homes have fallen more steeply, by 1.5 per cent and 1.2 per cent respectively, in the third quarter from a quarter earlier.

Over the first three quarters of this year, private home prices have slipped 2.6 per cent, compared to 3.2 per cent in the same period last year.