Buying sentiment strengthens ahead of Hungry Ghost Festival; non-landed private home resale price index rises 1% in July

Overall resale prices for non-landed private homes rose by 1% month-on-month in July, recovering from a 0.6% decline in June.

According to flash estimates for July's non-landed private residential price index, excluding small units, the resale price index for non-landed private properties in the Central Region climbed 0.8% month-on-month, whereas the Non-Central Region saw a 1% decline. Resale prices for small units edged up slightly by 0.5% month-on-month.

Resale Price Rebound a Typical Seasonal Pattern

Following the end of the June school holidays, the non-landed private residential market gathered momentum, with resale prices rebounding in July. In addition, some buyers brought forward their purchases of resale non-landed private homes to July to avoid the seventh lunar month (Hungry Ghost Festival).

Historically, the non-landed private resale market tends to see a post-June holiday rebound. The latest uptick in resale prices may also have been supported by HDB flat owners entering the market to upgrade to private housing.

Rising HDB resale prices have unlocked capital for these flat owners to upgrade; however, given that the price gap between new launches and resale private homes remains wide, resale private properties continue to be more appealing to them.

Looking ahead, market activity in the non-landed private resale segment is expected to be more subdued in August, as the month is traditionally dampened by the Hungry Ghost Festival.

Nonetheless, resilient demand and a tighter supply of new resale listings are likely to keep private resale prices supported at current levels.

The NUS Singapore Residential Price Index (NUS SRPI) tracks a representative basket of transaction data to reflect price movements of completed non-landed private properties. The latest release also revised the flash estimates for June. The overall resale price index decline in June remained unchanged at 0.6% month-on-month. Excluding small units, the decrease in the Central Region resale price index also held steady at 1.1%, while the contraction in the Non-Central Region index was revised down to 0.3%. The decline in the resale price index for small units was likewise revised downwards to 0.9%.