The Prices of freehold landed housing outside the prime districts have hit a new high, according to property consultant DTZ.
But DTZ notes that the pace of price increase for the entire residential sector is losing steam. In its report, it says price growth across all housing segments slowed in the third quarter of this year compared to the previous period.
DTZ said prices of freehold landed homes outside the prime districts rose 1.7 per cent to $952 per square foot in the third quarter of this year from the previous quarter, surpassing for the first time the peak of $943 psf recorded during the 1996 boom.
Meanwhile, the prices of freehold landed homes in the prime areas gained 2 per cent to $1,611 psf, lower than the 3.3-per-cent growth in the previous quarter.
DTZ added that, within the prime districts of 9, 10 and 11, the increase in average resale prices of freehold non-landed homes also slowed 1.4 per cent to $1,513 psf. This was caused by well-heeled investors remaining cautious over the recovery of major economies in the West.
Resale prices of leasehold homes in suburban areas increased by 2 per cent to $660 psf, weaker than the growth of 4 per cent in the previous quarter.
The prices of luxury condominiums recorded a slower increase of 1.6 per cent, to $2,630 psf.
DTZ says that following the Aug 30 implementation of real estate cooling measures, the volume of property sales is expected to fall for the rest of the year as sellers continue to maintain their asking prices while potential buyers hold out for lower prices.
Source : Today – 28 Sep 2010