Shoebox units lead 0.3% decline in prices of completed apartments and condos in June

The interior of a 388 sq ft apartment at Soho 188 in Race Course Road. Shoebox apartments range from under 400 sq ft to about 500 sq ft in size.
The interior of a 388 sq ft apartment at Soho 188 in Race Course Road. Shoebox apartments range from under 400 sq ft to about 500 sq ft in size. PHOTO: ST FILE

SINGAPORE - Prices of completed non-landed private homes in Singapore fell 0.3 per cent in June from May, according to flash estimates for the NUS Singapore Residential Price Index (SRPI) released on Tuesday.

While this translates into a 1.9 per cent price decline over the first half of this year, June's price decline was half of May's 0.6 per cent drop over April.

As in May, the price fall was sharpest among shoebox units of 506 square feet or below. They fell 1.1 per cent month-on-month in June after a 1.5 per cent deckine in May. Shoebox apartment prices have been on a downward trend as the number of such completed properties grows, especially in the non-central region.

Excluding these small units, prices of apartments and condominiums in prime areas are showing some signs of recovery. Non-landed private homes in the central region edged up 0.3 per cent in June from a month ago, after a 0.7 per cent decine in May over April, according to the SRPI index. The central region is defined by the university's Institute of Real Estate Studies (IRES) as districts 1-4, including the financial district and Sentosa Cove, plus the traditional prime districts 9, 10 and 11.

Prices of units in the non-central region continued to decline, falling 0.9 per cent in June, larger than the 0.4 per cent drop in May. Analysts have noted that buyers are still cautious towards taking up completed properties due to substantial new completions that are intensifying leasing competition.