NUS price index for private homes up 0.8% in May

National University of Singapore's (NUS) price indices for completed non-landed private homes rose month on month in May, after straight declines for several months. Its latest flash estimate shows that the Overall Singapore Residential Price Index (SRPI) rose 0.8 per cent in May from the revised value for April - after slipping one per cent in April over the previous month.

The increase marked the first gain for the index after nine consecutive months of declines between August 2013 and April this year. May's flash estimate is down 6.3 per cent from the recent peak in July 2013. Year on year, the May index value is down 6 per cent.

Commenting on the month-on-month appreciation based on the May flash estimate, associate professor Lum Sau Kim of the university's Department of Real Estate said the May indices were "perhaps boosted in part by the more active sales in the primary market during May".

"Going forward, the lower activity that is often the case in June may result in a small dip in the indices.

"Our general view based on the evidence thus far suggests that the market seems to be moderating slowly, with price levels that are still high due to the strength of holding power of many participants. The effects of newly completing supply have yet to kick in to induce larger price corrections for completed non-landed private homes," she added.

NUS's flash estimates yesterday showed the SRPI for Central Region (excluding small units of up to 506 sq ft) rose 0.7 per cent month on month in May, after easing 0.1 per cent in April. The latest May flash estimate reflects a 7.5 per cent year-on-year drop.

Central Region is defined as districts 1-4 (including the financial district and Sentosa Cove) and the traditional prime districts 9, 10 and 11 by the university's Institute of Real Estate Studies, which minted the SRPI series tracking prices of completed private apartments and condos (excluding executive condos).

The sub-index for Non-Central Region, again excluding small units, rose 0.8 per cent in May after sliding 1.9 per cent in April. The May figure translates to a 5 per cent year-on-year drop.

Prices of small apartments and condo units (up to 506 sq ft) islandwide climbed 0.8 per cent in May - against April's one per cent decrease. Year-on-year, the drop is 3.1 per cent. This is the smallest decrease of the four indices.

Source: Business Times 01st July 2014

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NUS price index for private homes up 0.8% in May

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