Rate of increase in housing prices slows down

The pace of growth in home prices has slowed in the second quarter of 2010 with the exception of the mass market segment, said DTZ Research.

According to DTZ, the resale prices of leasehold homes in the suburban areas rose by 4 per cent in Q2 on-quarter to $648 per square foot (psf) compared with the 2.1-per-cent increase recorded in the first three months of the year.

Looking ahead, DTZ expects prices of mass-market homes to be kept in check as the government releases more state land to meet demand.

Developers are also likely to tone down their land bids in view of the unprecedented high number of suburban sites available for tender in the second half of the year, said DTZ.

Meanwhile, DTZ said the average resale prices of homes in districts 9, 10 and 11 rose by 2.6 per cent on-quarter to a new high of $1,493 psf, up 0.7 per cent from the previous record set in the fourth quarter of 2007.

Prices of freehold non-landed resale homes outside the prime districts also climbed by 2.9 per cent to reach its previous peak of $747 psf, according to DTZ. But average prices for luxury non-landed homes, despite increasing 3.5 per cent on-quarter to $2,588 psf, are still 7.6 per cent off the record high hit in the fourth quarter of 2007.

DTZ also predicts that the total sales of new homes for the whole of this year would come in between 13,000 and 15,000 units.

Source : Today – 25 Jun 2010

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