May 29: NUS small apartment sub-index dips in April

[TheOnlyGayInTheVillage]

NUS small apartment sub-index dips in April
Business Times: Tue, May 29


[SINGAPORE] The tide may be turning for shoebox apartments, even as the prices of private resale homes continue to inch upwards in April.

According to the NUS Singapore Residential Price Index (SRPI), prices of small apartments (up to 506 sq ft) lost the most ground in April; the sub-index registered an islandwide drop of 1.2 per cent month-on-month according to flash estimates released yesterday.

The overall SRPI for April increased 0.8 per cent month- on-month.

In March, the SRPI sub-index for small apartments posted the strongest price gains across all the categories, rising 2.7 per cent.

Earlier this month National Development Minister Khaw Boon Wan noted that shoe-box units (defined as units of less than 700 sq ft) continue to be a cause of concern.

"We will continue to monitor these developments closely and will not hesitate to take action, if necessary," he said.

As of the end of the first quarter of this year, there are about 2,500 completed shoe-box apartments, which make up 1.2 per cent of the 210,000 non-landed units in the private housing stock. Looking ahead, this stock is expected to increase to about 9,700 by 2015.

Separately, the SRPI sub-index for the Central Region (excluding small units) rose 1.6 per cent. The sub-index for the Non-Central Region (excluding small units) remained unchanged.

According to Ong Kah Seng, director at R'ST Research, the marginal price increase of non-landed homes in the Central Region is within expectations as this segment was "considerably affected in the aftermath of the additional buyers stamp duty", and has been lagging behind in price recovery.

Specifically, the increase in the number of higher value transactions in April led to the SRPI for Central picking up by 1.6 per cent, said Credo Real Estate executive director Ong Teck Hui.

"An analysis of caveats for non-landed properties lodged in April for prime districts 9, 10 and 11 shows a median price of $1,580 psf and 36 transactions of $2,000 psf or higher. For March, the median price was $1,500 psf and only 20 transactions of $2,000 psf or higher was recorded," he said.

Lee Sze Teck, senior manager of research and consultancy at DWG added: "Transaction volume in the resale market is holding above the 1,000 unit mark since March 2012. Furthermore there could be spillover demand from the primary market to the resale market. For buyers who are looking to buy a residential unit in the Central Region, they have to turn to the resale market as there are limited launches in the Central Region."

Looking ahead, R'ST's Mr Ong expects resale properties in the central region to continue to do well.

He said: "Those at the city fringes are expected to see continued improved property buying interest, as there were and will be minimal developer projects available for buyers.

"Buyers who have been on the sidelines are recognising the attractiveness of homes in the central region, largely for the investment fundamentals (and because the aspiration for) a prime address supersedes other private residential address."

The National University of Singapore's Institute of Real Estate Studies, which minted the SRPI series, defines Central Region as Districts 1-4 (which include the financial district and Sentosa Cove) and the traditional prime residential districts of 9, 10 and 11. SRPI tracks prices of completed private apartments and condos (excluding executive condos).

Source: Business Times © Singapore Press Holdings Ltd.

[TheOnlyGayInTheVillage]

"Earlier this month National Development Minister Khaw Boon Wan noted that shoe-box units (defined as units of less than 700 sq ft) continue to be a cause of concern."

Huh? Now <700sf considered shoebox??

[Leeds]

"Earlier this month National Development Minister Khaw Boon Wan noted that shoe-box units (defined as units of less than 700 sq ft) continue to be a cause of concern."

Huh? Now <700sf considered shoebox??

A 700 sf apartment that squeeze in 3-bedroom is still a shoebox when you try to live in. So the definition of shoebox size must take into consideration the number of bedrooms. So a 900 sf apartment with 4 bedroom is as good as a shoebox or even worst.

[Shoeboxsupporter]

"Earlier this month National Development Minister Khaw Boon Wan noted that shoe-box units (defined as units of less than 700 sq ft) continue to be a cause of concern."

Huh? Now <700sf considered shoebox??

Maybe later <1000sf also considered shoebox

[Shoeboxsupporter]

A 700 sf apartment that squeeze in 3-bedroom is still a shoebox when you try to live in. So the definition of shoebox size must take into consideration the number of bedrooms. So a 900 sf apartment with 4 bedroom is as good as a shoebox or even worst.

If this is the case, then 1 bed room 500 sf Shoebox should not have any concerns, since only 1 bed room....quite good already

[Leeds]

If this is the case, then 1 bed room 500 sf Shoebox should not have any concerns, since only 1 bed room....quite good already

Exactly!

Usually, a studio or 1-bedder is about 500 to 700 sf in older developments and a typical 2-bedder is between 800 to 1000 sf.

[reporter2]

http://www.businesstimes.com.sg/prem...dex-dips-april

Published May 29, 2012

NUS small apartment sub-index dips in April

Overall Residential Price Index increases 0.8 per cent month-on-month

By Mindy Tan


[SINGAPORE] The tide may be turning for shoebox apartments, even as the prices of private resale homes continue to inch upwards in April.

According to the NUS Singapore Residential Price Index (SRPI), prices of small apartments (up to 506 sq ft) lost the most ground in April; the sub-index registered an islandwide drop of 1.2 per cent month-on-month according to flash estimates released yesterday.

The overall SRPI for April increased 0.8 per cent month- on-month.

In March, the SRPI sub-index for small apartments posted the strongest price gains across all the categories, rising 2.7 per cent.

Earlier this month National Development Minister Khaw Boon Wan noted that shoe-box units (defined as units of less than 700 sq ft) continue to be a cause of concern.

"We will continue to monitor these developments closely and will not hesitate to take action, if necessary," he said.

As of the end of the first quarter of this year, there are about 2,500 completed shoe-box apartments, which make up 1.2 per cent of the 210,000 non-landed units in the private housing stock. Looking ahead, this stock is expected to increase to about 9,700 by 2015.

Separately, the SRPI sub-index for the Central Region (excluding small units) rose 1.6 per cent. The sub-index for the Non-Central Region (excluding small units) remained unchanged.

According to Ong Kah Seng, director at R'ST Research, the marginal price increase of non-landed homes in the Central Region is within expectations as this segment was "considerably affected in the aftermath of the additional buyers stamp duty", and has been lagging behind in price recovery.

Specifically, the increase in the number of higher value transactions in April led to the SRPI for Central picking up by 1.6 per cent, said Credo Real Estate executive director Ong Teck Hui.

"An analysis of caveats for non-landed properties lodged in April for prime districts 9, 10 and 11 shows a median price of $1,580 psf and 36 transactions of $2,000 psf or higher. For March, the median price was $1,500 psf and only 20 transactions of $2,000 psf or higher was recorded," he said.

Lee Sze Teck, senior manager of research and consultancy at DWG added: "Transaction volume in the resale market is holding above the 1,000 unit mark since March 2012. Furthermore there could be spillover demand from the primary market to the resale market. For buyers who are looking to buy a residential unit in the Central Region, they have to turn to the resale market as there are limited launches in the Central Region."

Looking ahead, R'ST's Mr Ong expects resale properties in the central region to continue to do well.

He said: "Those at the city fringes are expected to see continued improved property buying interest, as there were and will be minimal developer projects available for buyers.

"Buyers who have been on the sidelines are recognising the attractiveness of homes in the central region, largely for the investment fundamentals (and because the aspiration for) a prime address supersedes other private residential address."

The National University of Singapore's Institute of Real Estate Studies, which minted the SRPI series, defines Central Region as Districts 1-4 (which include the financial district and Sentosa Cove) and the traditional prime residential districts of 9, 10 and 11. SRPI tracks prices of completed private apartments and condos (excluding executive condos).