Jun 29, 2011

Resale prices of private homes continued to rise at a faster pace in the second quarter, according to an analysis by DTZ Research.

DTZ’s analysis showed that the average resale price of leasehold condos in suburban areas climbed 3.9 percent quarter-on-quarter in the second quarter, while resale prices of freehold condos located in the prime districts 9, 10 and 11 grew 3.3 percent in Q2, up from 0.8 percent in the first quarter.

Meanwhile, new data released by the National University of Singapore (NUS) also supported DTZ’s analysis that resale prices are increasing more quickly.

NUS's monthly Singapore Residential Price Index indicated that prices of non-landed private homes increased 2.5 percent in May, from 1.1 percent in April and 0.2 percent in March.

The central region led the growth, with prices of non-landed private homes in Districts 1to 4 and 9 to 11 rising 3.5 percent in May. Prices in the non-central region, on the other hand, rose by a slightly lower 1.7 percent.

In contrast, NUS recorded that prices in the central and non-central region climbed one percent and 1.2 percent in April respectively.

Some analysts attributed the increase to higher asking prices quoted by sellers.

“Asking prices of resale homes continue to trend upwards as sellers benchmarked against the prices of new launches,” said Chua Chor Hoon, Research Head at DTZ Southeast Asia.

Joseph Tan, Executive Director for Residential at CB Richard Ellis (CBRE), also said that sellers could raise their asking price, as some of the units in newly launched projects in the vicinity command the benchmark prices.

He added that buyers are also willing to spend more for resale units, as there is still a price difference between new and resale homes.

Info courtesy –