Singapore Residential Price Index (SRPI) was officially lunched by National University of Singapore’s Institute on Wednesday 24 March, 2010. It uses a “basket based” approach covering new projects, condominiums and apartments. SRPI aim is to provide information about the state of the residential property market in Singapore.
The SRPI (Singapore Residential Price Index) follows monthly price movement, will give a resource for the growth of property derivatives. For real estate developers, asset directors, banks and shareholders, such derivatives may be one way to prevaricate their property exposure. National University of Singapore Institute adjusts SRPI once in every two year to reflect the changes in supply, so next SRPI will be revised in December 2011. The New index can also help the analysis of price trends and investors in making more informed decisions.
The basket includes 364 private residential projects placed across 26 postal districts in Singapore. The SRPI Unique feature is that it uses a fixed basket of properties to decide the data. It can also help for increasing the set of financial products like index—related notes and total return exchange offered in Singapore. NUS hopes the new index to complement the quarterly data provided by the Urban Redevelopment Authority.
Risk management products similar these will complement the offered group of real estate investment products such as REITs, real estate business trusts, real estate funds and equities. Property analyst has many different options which provide more useful data for comparison.
Senior Minister of State for National Development Grace Fu, who launched the index, said it offers a snap shot of the non-landed residential property market.
“That would be useful. Any more information to make the market as perfect as possible helps decision-makers” said Karamjit Singh, managing director of Credo Real Estate.
Head of Research for Jones Lang LaSalle in Southeast Asia, Dr. Chua Yang Liang said, “This new announcement will definitely factor well for Singapore in terms of how transparent our property market”.
