Condo prices in central Singapore inch up - but for how long?

Values rose 0.7 per cent in July from June, and follow June’s 0.9 per cent lift - but they are still down 1.3 per cent from a year earlier.
The non-central region has not fared as well; prices were down 2.3 per cent year on year, according to NUS Singapore Residential Price Index (SRPI) data yesterday.
Prices of completed apartments island-wide rose 0.2 per cent last month after increasing 0.7 per cent in June.
The July lift was largely due to the better showing among central region apartments, which helped offset the 0.2 per cent fall in the non-central region.
While prices of small units were unchanged last month, they have fallen the most compared with a year back – recording a 4.4 per cent decline, said Ong Teck Hui, JLL national research director.
The large price drop is due to weaker demand for small resale units, he said.
New sales of small units in the 12 months to the end of July accounted for 78 per cent of total sales of small units.
“This indicates that new projects provide more opportunities that meet the needs of small-unit buyers, drawing them away from the resale market,” said Ong.
“So while some may still be waiting for prices to drop further, others have returned to the market,” PropNex executive director Kelvin Fong said.
Many developers, especially those with projects in Districts 9 and 10, have been coming up with various attractive schemes as well, so while the pick-up is largely across the board, it is strongest in the central region, he said.
Sales by his team of about 2,600 agents rose about 50 per cent year on year last month.
Transactions have slowed a tad this month, partly due to the Hungry Ghost Festival, but are still better than a year ago.
The luxury property market still has buyers who wish to invest for the longer term, said Jennifer Chia, executive director and head of corporate real estate at TSMP Law Corporation.
“Most of them have ties to Singapore – Singaporeans or permanent residents, or those who see Singapore as a place they will live in the longer term,” she added.
Meanwhile, resale prices of private apartments, condos inch up 0.2 per cent in July over the previous month, according to flash estimates of the Singapore Residential Price Index (SRPI) released early this week.
July’s performance did not match that of June when overall prices, excluding those of small units, rose 0.7 per cent over May. This was revised up from a 0.6 per cent estimate.
The SRPI, compiled by the National University of Singapore’s Institute of Real Estate Studies, showed prime properties fared better, with their prices rising 0.7 per cent compared to a 0.2 per cent price fall for units outside the central region.
Prices of small units, which have a floor area of up to 506 square feet, were unchanged in July.