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Nicholas Mak, head of research in ERA Realty Network, states,”After raising 3.5% for 3 successive weeks from June to September this year, the general SRPI slipped in October since the strong rate of growth in June to September wasn’t sustainable.”
The flash estimate of SRPI sub-index for your CCR fell 0.7% from September to October, although the flash estimate of SRPI sub-index to its non-central area remained unchanged at precisely the exact same moment.
Mak notes that resale properties at the prime districts direct the marginal cost decrease, and attributes to the shortage of important residential project starts at the CCR at the previous five months. Rather, more residential projects are found from the city fringe, for example Forett in Bukit Timah, Penrosen and Verdale.
Moreover, the SRPI for smaller units climbed 0.9% at the period from June to September, that’s the most rapid rate of expansion in contrast to another sub-indices, observes Mak.
He states that this might be due to a chain impact as a consequence of reduced residential leasing requirement, on account of this Covid-19 pandemic. “The purchasing demand for smaller units is dependent upon investors in contrast to the other kinds of housing. Since residential leasing requirement is affected from the Covid-19 outbreak, the requirement for smaller units can also be affected,” he states.
With the present evolution of Covid-19 vaccines, Mak anticipates the weakness at the SRPI in October for a”temporary pause”.