Residential price rises slowed in Q3

Residential price rises slowed in Q3

All housing segments in Singapore have seen a slowdown in the rate of price increases in the third quarter compared to the earlier period, according to estimates released by DTZ Research.

Mass market homes continued to lead the price increase, with resale prices of leasehold homes in the suburban areas up 2 percent quarter-on-quarter to S$660 psf. The increase is weaker compared to the 4 percent growth in Q2 as prices continued to reach new record highs amid growing buyers’ resistance.

Luxury condos, the only sector where prices are still below earlier peak prices, increased 1.6 percent quarter-on-quarter to S$2,630 psf. The growth is approximately 6 percent lower than the record of S$2,800 psf reached in Q4 2007.

The increase in average resale prices of freehold non-landed homes in the prime districts of 9, 10 and 11 also slowed 1.4 percent quarter-on-quarter to S$1,513 psf, as wealthy investors were still cautious over the growth of major western economies.

The landed segment, which has enjoyed strong growth since Q2 2009, also saw a slowdown in price increases, with freehold landed units in prime areas up 2 percent quarter-on¬-quarter to S$1,611 psf, compared to the 3.3 percent increase in the previous quarter. Prices outside the prime districts also climbed 1.7 percent to S$952 psf, surpassing the high of S$943 psf during the peak in 1996.

The slow increase in prices is expected to end for the rest of the year after the recent implementation of government measures to cool the residential market. A lower sales volume is also expected as sellers maintain their asking prices while potential homebuyers hold out for lower prices.

Ms. Margaret Thean, executive director for residential at DTZ, said: “Projects in good location and units with the right pricing should be able to achieve good sales as there are still buyers looking at property investments due to the low interest rates and strong economic growth.”

Info courtesy: Propertyguru