LANDED HOMES' CAP VALUES CLIMB FASTER THAN CONDOS, APARTMENTS

LANDED HOMES' CAP VALUES CLIMB FASTER THAN CONDOS, APARTMENTS

Dec 22, 2010

Average capital values of Singapore landed homes have increased at a faster rate than those of private apartments or condominiums in the fourth quarter and the whole of 2010, according to latest figures from DTZ.

DTZ’s analysis pertained only to resale non-landed and landed homes, or those that have already received Certificate of Statutory Completion.

“The limited stock of landed homes has made them prized assets, especially those in the prime districts. Landed homes currently account for about 26 percent of Singapore's total private housing stock (including executive condos), with very limited supply in the pipeline. In contrast, the supply of non-landed private homes is injected at a faster pace via the Government Land Sales programme and collective sales,” said Chua Chor Hoon, research head of DTZ Southeast Asia.

Prime resale freehold landed homes saw an average capital value of $1,693 psf on land area in Q4, up 5.1 percent from Q3, resulting in a full-year appreciation of 17 percent. Meanwhile, the average capital value of suburban freehold landed houses rose 4.3 percent quarter-on-quarter to $993 psf in Q4, taking the full-year increase to 15.5 percent.

In the non-landed segment, 99-year suburban condos’ average cap value remained unchanged at $660 psf on strata area in Q4, reflecting an 8 percent full-year price gain. Average capital value of prime freehold condos inched up 0.4 percent quarter-on-quarter to $1,520 psf, taking the appreciation for the whole year to 8 percent.

Prices in the two segments are hitting resistance, having increased by around 18 percent and 36 percent since their respective Q1 2009 lows after the global financial crisis, said DTZ, adding that the latest capital values are also above their respective Q4 2007 peak levels.

“Greater prudence is also being exercised on buyers' part following the latest property cooling measures introduced on Aug 30. Buyers are more selective and prefer projects with good location attributes such as proximity to MRT stations, schools or the central business district,” said DTZ.

Meanwhile, the average capital value of freehold luxury condos in the prime districts stood at $2,630 psf in Q3, around 6 percent lower than the Q4 2007 peak of $2,800 psf. The latest figure remained unchanged from Q3, while the full-year appreciation was 9.6 percent.

Info courtesy - Propertyguru