SRX’s X-value is the primary tool used for most calculations found in the SRX Property magazine (srx.com.sg/property-magazine). This page briefly describes the X-value and the methodology behind the results in the magazine.
What is the X-Value?
X-Value is based on the same real-time transaction data which powers the SRX Property Price Index. The Index is reported by all major media outlets (eg. Straits Times, Channel News Asia and Business Times) every month.
X-Value is used by real estate valuers, consumers, real estate professionals and businesses with 80,000-100,000 requests made each month. The formulae and calculations behind each X-Value are complex but the underlying concepts are straightforward. For more information on the methodology of the X-value, follow this link: What is X-Value?
Study Methodology
The median sale X-value, median rental X-value and median rental yield in the articles are based on the total X-Value of all measurable non-landed residential properties (NLP). These measurable units consist of over 250,000 unique NLP units derived from addresses found in URA and SRX transaction databases.
X-Value can be calculated retrospectively i.e. an X-Value for a unit can be calculated at a historical point in time. This allows us to calculate the market value of each home in 2016 and previous years. Fourth quarter is used as the reference to represent the market value for each year except 2016. In 2016, first quarter was used.
Once the market value of each unit is derived, the data can be aggregated to get the median sale, rental or rental yield value according to any location, district or condominium project.
The Prime Districts, defined as Districts 1, 4, 9, 10, 11, is the focal point throughout the whole magazine. As such, comparisons are often made between that of a particular location of interest (e.g. D’leedon or Botanic Gardens) with the Prime Districts. Unless otherwise stated, all calculations for median Sale and Rental Yield values in Prime Districts are based on Freehold land tenure. This is because most of the residential properties in Prime Districts are of Freehold status. However, median Rental values of Prime Districts are based on both Freehold and Leasehold properties since there is no rental premium for a property being Freehold or Leasehold.
The median values and rental yields for Prime Districts are as follows:
To derive the annual change, 7.3 years were used to compare up to the 2016 Q1.
The median values and yield for Prime Districts are as follows:
In the next section, we will cover the detailed methodology employed in each article.
“Seeking Singapore’s Central Park” (page 14)
As Botanic Gardens span across an elongated area, we had to use a 1-km radius around 4 markers (see below) to represent the properties around Botanic Gardens.
X-Value was used to calculate the median Rental Yield, median Sale PSF and median Rent PSF of condominiums that fall within the radii. Retrospective median value and yield are also calculated based on the same area.
These are then compared to the median values of the Prime Districts (table).
To derive the annual change, 7.3 years were used to compare up to the 2016 Q1.
These are then compared to the median values of the Prime District (table)
“Living Near The Park” (page 16)
Around 1,400 unique addresses in D’leedon were captured in URA and SRX transaction databases.
The values in the table were calculated using X-Value methodology outlined earlier.
As D’Leedon is a leasehold condominium, only leasehold non-landed properties around D’Leedon were used for comparison. All things equal, freehold properties usually have higher capital values compared to leasehold properties. Therefore, in order to make a fair comparison, freehold properties are not included in the comparison chart.
To derive the annual change, 4.3 years were used to compare up to the 2016 Q1.
“Keppel Bay: A Place of Historic Transformation” (page 20)
A 1-km radius is drawn around Harbourfront MRT to represent the Keppel Bay area. Most of these units are found in Corals At Keppel Bay, Reflections At Keppel Bay and Caribbean At Keppel Bay.
The values in the table were calculated using X-Value methodology outlined earlier.
To derive the annual change, 7.3 years were used to compare up to the 2016 Q1.
Novena: The Next Cinderella Story of Singapore Property (page 26)
To represent the Novena area, freehold units within 1km radius of the Novena MRT were used. These are then compared with the median value of freehold homes in Prime Districts.
To derive the annual change, 7.3 years were used to compare up to the 2016 Q1.
