NUS study: Last 2 rounds of cooling measures more effective

A study by NUS’s Institute of Real Estate Studies suggests the two latest rounds of property cooling measures on Aug 30 last year and Jan 13 this year may have been more effective in taming prices of completed non-landed private homes than the earlier two series of tightening measures in September 2009 and February 2010.


NUS’overall Singapore Residential Price Index (SRPI) has inched up about 0.19% on average per month since the January measures were introduced. It also increased only about 0.12% on average from the time the end-August 2010 measures were introduced till December last year.

In contrast, the September 2009 and February 2010 cooling measures were followed by average monthly increases in the SRPI of 1.13% and 1.23% respectively.

The index covers only completed non-landed private homes.

Average monthly sales volumes of non-landed private homes – covering transactions in both the primary and secondary markets but excluding executive condos – have shrunk to 1,391 after the latest Jan 13 cooling measures (based on URA Realis caveats data up to April 21).

The monthly sales volume following last August’s tightening package was 2,490 units, while the figure after the February 2010 cooling measures was 2,907.

NUS’s latest flash estimates for its March 2011 SRPI also showed that prices of completed apartments and condos fared better in suburban locations than in the poshest areas.

The SRPI sub-index for the Central Region, which covers district 1 – 4 and 9 – 11, dipped 1.9% month-on-month in March, according to NUS’s flash estimates. This sub-index has appreciated 2.6% since the end of last year and 8.6% year on year.

In contrast, the sub-index for the Non-Central region, where suburban mass-market condos are located, appreciated 1.7% month on month in March. The flash estimate for March was up 3.8% year to date and 14.4% year on year.

As a result, the overall SRPI rose 0.1% month on month in March; the March flash estimate reflected price gains of 3.3% year to date and 11.9% year on year.

* Source: The Business Times

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