Prices of completed non-landed homes showing signs of stabilising

SINGAPORE - Prices of completed non-landed private homes are showing signs of stabilising after five straight months of decline but smaller units are still getting a beating.

Values rose 0.1 per cent in October over September, after rising 0.3 per cent in September, according to flash estimates out on Monday (Nov 30) for the NUS Singapore Residential Price Index (SRPI).

The modest rally stems from increasing buyer interest in resale properties over the past half year while developers cut back on launches.

The slight uptick in October was supported by a 0.3 per cent rise in prices of completed non-landed homes in the central region. However, they had fallen 0.3 per cent in September.

The NUS Institute of Real Estate Studies defines the central region as districts 1 to 4, including Sentosa Cove, and the traditional prime districts of 9 to 11.

Prices of units outside this zone were unchanged in October after rising 0.6 per cent in September.

Prices of small units of up to 506 sq ft fell 0.6 per cent in October, after falling 0.7 per cent in the preceding month.

"Values of small units are now getting hammered as more of them are completed and some owners face challenges in renting them out... In the current market, overall leasing demand is weaker than the supply that is coming up," said Mr Nicholas Mak, SLP International executive director.

Most tenants have a wealth of choices and would naturally prefer larger units for the same amount of rent, other things being equal, he added.