Has the prime residential properties market already found its footing?

Central unit price index rose 0.6% in July.

Even with the decline in the prices of completed non-landed private homes in the city-state, the prime residential property market has seen rebounds in its prices in the past few months.

According to ERA Realty Network analyst Eugene Lim, the prices of centrally located properties have been on the uptrend in the past few months.

"Prices of units in central areas remained unchanged from July, while prices of small units moderated by a slight 0.1 per cent," he said.

Based on National University of Singapore's latest figures, central unit price index registered flat growth, following a 0.6% growth in July.

Lim explained that the buyers are mainly those who are taking longer term perspective on the property market in Singapore.

"We noticed that increasingly more buyers on the sidelines have decided not to wait anymore and have started to commit to a purchase as the government has made it clear that the cooling measures will not be removed for some time. So they do jump onto the bandwagon when a good buy comes along, particularly in prime and city fringe locations," she argued.

However, this upside in prices is expected to be very limited as loan caps remain in place and uncertainties surface in the economic and employment market.