S'pore luxury home prices shoot up by 20%

Despite the property cooling measures announced in January, prices of luxury units have risen a staggering 20 percent to S$7.9 million, according to Kim Eng, in a report by Singapore Business Review.

“While the average price per unit in all the other segments declined, in the luxury segment, it rose nearly 20 percent from S$6.6 million to S$7.9 million,” it said.

It added that the volume dropped slightly to 43 units from 46 units but that transaction value increased to S$340 million from S$305 million.

Meanwhile, the transaction volume for units below S$1,000 psf remained strong, with developers selling 2,225 units, down 4.3 percent from 2,325 units sold last year.

The total transaction value, however, dropped by a larger 15.4 percent to S$2.04 billion from S$2.41 billion, which implies that the average unit size sold during the first half of 2011 was smaller.

In the resale market, the transaction volume for high-end and luxury segments increased between 23 and 27 percent, while the average price per unit increased, with the luxury segment leading at 20.6 percent.

The transaction volume for units below S$1,000 psf dropped 38.5 percent to 3,440 units in the first half, from 5,593 in the previous year.

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