Landed property prices soar 5.1% in Q4

Landed freehold unts in the prime districts rose to $1,693psf on average.

This is compared to the 2% growth in Q3 2010, according to DTZ Research. Outside the prime districts, prices grew 4.3% to an average of $993 per sq ft, compared to the 1.7% increase a quarter ago. This represents an increase of about 16% for the landed properties for the whole of 2010 and about 37% since prices started to rise in Q2 2009.

Prices of non-landed resale homes remained largely unchanged in Q4 2010 compared to the previous period.

The average resale price of leasehold condominiums in the suburban areas, which had been leading the price uptrend in the previous two quarters, held firm at $660 per sq ft. The average resale price of freehold non-landed condominiums in the prime districts of 9, 10 and 11 grew marginally by 0.4% QOQ to $1,520 per sq ft. Average prices in both segments have increased by about 8% for the whole of 2010.

With prices of the two segments above having surpassed their previous peaks in 2007, the indication is that the price increases of 18% in the suburban areas and 36% in the prime districts over the past seven quarters is hitting a resistance wall. Greater prudence is also being exercised on the buyers’ part on the back of the 30 August government measures. Buyers are more selective, and prefer projects with good location attributes like proximity to MRT stations, schools or CBD.

Luxury condominiums, being the only segment where prices are still 6% below the 2007 peak, also saw prices in the quarter maintaining at an average of $2,630 per sq ft on the secondary market. With a limited pool of buyers being able to afford these luxurious unitswhich require a large quantum sum, this segment has seen more subdued purchasing activity.

Ms Margaret Thean, Executive Director (Residential), commented, “Although there is less activity in the high-end segment, we are still seeing strong interest from the Chinese and Indian nationals, and increasingly from institutional funds. They have confidence in the future growth in prices due to the strong economic fundamentals of Singapore. For individual foreigners buying for owner-occupation, completed developments near renowned schools particularly interest them.”