Prime freehold condominium units in districts 9, 10 and 11 are fetching record prices in the resale market, more than what they did during the last peak in Q4 2007, according to a new report.
Property company DTZ said that the average resale price of freehold non-landed homes in the three districts increased 2.6 percent quarter-on-quarter to $1,493 psf in Q2 2010. This figure is 0.7 percent higher compared to the previous record of 1,483 psf in Q4 2007.
However, resale prices of more upmarket homes that sell for over $2,500 psf remain 7.6 percent lower than the peak in Q4 2007.
The average price of freehold luxury non-landed homes grew 3.5 percent quarter-on-quarter in Q2 to $2,588 psf.
Meanwhile, prices of freehold non-landed resale homes outside the prime districts rose 2.9 percent, hitting the earlier peak of $747 psf in Q4 2007.
Resale prices of suburban mass market homes, leasehold homes outside the prime districts,went up four percent quarter-on-quarter to $648 psf.
While prices surged in all of the tracked categories, DTZ said that the pace of increase slowed in Q2, as uncertainty in the stock market and resistance to high asking prices hit buying interest within the real estate market. Exempted from this trend was the mass market segment, where resale leasehold condo prices climbed more than they did in the earlier quarter. The four percent increase in Q2 was higher compared with the 2.1 percent gain in Q1.
DTZ said the aggressive bids for government sites in suburban areas and the comparatively higher prices of new projects have affected the increase in home prices in the secondary market.
However, property developers are expected to “tone down” their land bids considering the unprecedented high number of suburban sites scheduled to be sold in the second-half 2010 Government Land Sales Programme, said Chua Chor Hoon, head of South-east Asia research of DTZ.