Prices of completed private apartments and condominiums picked up pace in November, with those in the central region leading the gains.
According to the National University of Singapore (NUS) Singapore Residential Price Index (SRPI), prices of private non-landed homes climbed 1.9% in November.
This follows a 0.8 per cent increase in the previous month.
In particular, prices of private non-landed homes in the central area (excluding small units) advanced by 2.6% in November, compared with a 0.4% rise in October.
NUS' Institute of Real Estate Studies, which published the SRPI flash estimates, said the sharp rise in prices of private non-landed homes (excluding small units) in the central area was driven by strong resale activity. Units in the central region made up about 35% of the total volume of transactions in October and November compared to 25% in January .
Associate Professor Lum Sau Kim of the NUS Institute of Real Estate Studies added that the housing market is still enjoying "favourable demand conditions with low nominal interest rates and low unemployment".
Meanwhile, prices of resale private homes in the non-central regions (excluding small units) edged up 1.3%, compared to a 1.2% increase a month earlier.
Prices for small units with a floor area of 506sqft or below rose 1.7%.
HSR Property Consultants' special advisor, Donald Han, said: "Developers launched less units for sale but instead focused on sales of existing projects that have been completed.
"For example, Reflections at Keppel Bay saw sales of six units in the month of November. The lack of new projects also caused investors to turn to the secondary market."
He added that centrally-located projects have also been re-rated by investors, given that their price increases have lagged behind those in the suburban area.
Source: Channel News Asia