Resale price fell marginally in November: SRPI

By The Folks @PropTalk - December 29, 2014 No Comments

Resale prices of private homes dipped slightly last month, according to Singapore Residential Price Index (SRPI) flash estimates, which were released on Monday (Dec 29).
The SRPI, compiled by the National University of Singapore's Institute of Real Estate Studies, showed overall prices decreased 0.3% in November from the previous month. In October, overall prices rose 0.4% from a month earlier - up 0.1 percentage point from that month's flash estimates.
Prices of homes in the central region, excluding small units, fell 0.5%, and prices of homes in the non-central region, excluding small units, stayed level in November from October.
Prices of small units, which have a floor area of 506sqft or below, fell the most at 1.9% on-month.
Source: CNA
The latest SRPI estimates certainly do not bode well for shoebox apartments. This comes immediately after a news report by CNA yesterday saying that rentals of shoebox units could fall by five to ten per cent in the coming years due to an expected increase in supply.
About 6,200 shoebox units will be completed in the next two years. Property consultant SLP International said this is a record number - compared to the 3,000 units on average per year for the last decade.
SLP said shoebox units within the city centre or near MRT stations would command better rentals compared to others.
Nicholas Mak, executive director of research & consultancy at SLP International, said: "Those shoebox developments that are located away from the city or MRT stations, I think they will not be doing very well in terms of their rental demand.
"And furthermore, if they are located within the suburban areas where typically family units are in more demand, such developments may actually languish in the rental market."

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