Prices of landed homes outside prime areas hit new high

Prices of landed freehold units outside the prime districts have hit a new high in the third quarter of this year.

Property consultant DTZ said prices of homes outside the prime areas inched up 1.7 per cent quarter-on-quarter to S$952 per square foot, surpassing for the first time the high of S$943 per square foot recorded during the 1996 boom.

Meanwhile, landed freehold units in the prime districts of 9, 10 and 11 moved up 2 per cent on-quarter to S$1,611 per square foot, lower than the 3.3 per cent growth in the previous quarter.

DTZ noted that the pace of price increase for the residential sector has lost steam.

It said in a report that price growth across all housing segments slowed in the third quarter compared to the previous period.

Similar to the second quarter, mass market homes led the way in the uptrend of prices in the third quarter.

Resale prices of leasehold homes in the suburban areas increased by 2 per cent quarter-on-quarter to S$660 per square foot.

This was weaker than the growth of 4 per cent in the previous quarter as prices continued to set new record highs amid increasing buyers’ resistance.

Luxury condominiums also saw a slower increase of 1.6 per cent on-quarter to S$2,630 per square foot.

DTZ added that within the prime districts, the increase in average resale prices of freehold non-landed homes also slowed to 1.4 per cent on-quarter to S$1,513 per square foot.

The consultant attributed this to well-heeled investors remaining cautious over the growth of major economies in the West.

DTZ said the slow growth in prices is likely to come to a halt for the rest of the year following the recent implementation of government measures to cool the property market.

Sales volume is also expected to be lower as sellers continue to maintain their asking prices while potential buyers hold out for lower prices.

Source : Channel NewsAsia – 27 Sep 2010

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