Wednesday, June 24, 2009

Singapore home prices rise in Q2 on stronger demand

Prices of non-landed homes sold in Singapore in the second quarter of this year rose 28 per cent from the first quarter.

CB Richard Ellis (CBRE) said the quarter-on-quarter increase was the largest for sales of new freehold non-landed residential projects.

Prices of freehold units averaged S$938,000 in the second quarter, up from S$733,000 the previous quarter.

A large proportion of the units sold were family-sized units in projects such as IResidences, The Arte, Versilia On Haig – which reflected a median price of S$830 to S$925 per square foot (psf).
On a unit rate basis, CBRE said home prices sold in the second quarter was 14.6 per cent lower than that in the first quarter. This was because the caveats for higher-priced condominiums such as Martin Place Residences, The Wharf Residences and One Devonshire have not been lodged yet.

CBRE said once these caveats are lodged, it expects the unit rate to be higher than the S$1,051 psf rate in the first quarter.

Meanwhile, sales of new 99-year leasehold projects such as the Caspian (S$580 psf), Mi Casa (S$625 psf), and Double Bay Residences(S$650 psf) were lower compared to freehold non-landed projects.

Prices of leasehold units averaged S$788,000 in the second quarter, up 13.2 per cent from the first quarter, where prices averaged S$696,000. Based on the unit rate, the second quarter’s price of S$655 psf was 6.9 per cent higher than a quarter ago.

Resale prices for freehold non-landed properties increased 8.2 per cent, while leasehold resale prices saw a 2.9 per cent rise from the first quarter.

CBRE said it expects sales of 3,500 to 4,000 units at the end of the second quarter, much higher than the 2,596 units in the previous quarter.

In the first half of 2009, HDB upgraders made up 65 per cent of buyers of new homes, compared to 44 per cent in the whole of last year. They have also been active in the secondary market, making up 49 per cent of buyers of resale units – compared with 33 per cent in 2008.

Source: Channel News Asia, 24 June 2009

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