Prices of completed condos down 0.3% in February

By The Folks @PropTalk - March 31, 2015 No Comments

Prices of completed private non-landed homes in Singapore dipped 0.3% in February from January, going by flash estimates of the National University of Singapore (NUS) Institute of Real Estate Studies.

This signalled a 5% drop in NUS Singapore Residential Price Index (SRPI) from a year ago and a 9.4% fall from the peak in July 2013.

The main drag to the NUS SRPI in February published on Monday came from the Central Region, which NUS defines as covering districts 1 - 4 (including the financial district and Sentosa Cove) and the traditional prime districts 9, 10 and 11.

The sub-index for Central Region (excluding small units of up to 506sqft) fell 0.7% month-on-month in February. The NUS sub-index for small units of up to 506sqft showed a 0.2% decline in prices.

NUS on Monday also published the revised index values for January 2015 as more data became available, showing the overall price index fell 0.9% month-on-month, smaller than its earlier reported 1.6% fall.

Consultants note that monthly reporting of non-landed residential prices is becoming more volatile amid sharply reduced market transactions.

This rings even more true for the NUS shoebox sub-index as fewer data points tend to increase the degree of error in an index.

The number of sales transactions involving units in the fixed basket tracked by NUS was 273 units in February, of which only 3 were shoebox units.

But under NUS SRPI methodology, prices of untraded units in the basket are marked-to-market based on sales signals observed in the vicinity. Each month, the values of the properties tracked are estimated using regression analysis of transacted prices observed.

Its pre-determined basket comprises private condominium projects that received temporary occupation permit in the past 10 years, and projects with fewer than 40 units are left out since they are less liquid.

Source: BT

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