Landed home prices in Singapore grew at a faster pace than those of non-landed homes in the third quarter of this year, according to DTZ Research.
Average resale prices of leasehold landed homes in non-prime districts grew 3.8 percent quarter-on-quarter in Q3, while average resale prices of freehold landed homes in the prime districts of 9, 10 and 11 increased by 2.8 percent quarter-on-quarter.
In the non-landed sector, average resale prices of leasehold condominiums in suburban areas climbed at a slower rate of 2.5 percent quarter-on-quarter in Q3, while average resale prices of luxury condominiums in the prime districts of 9, 10 and 11 remained flat.
“Transactions in the high-end market have become more selective. Some projects still experience price increases. In a slower market, prices of the better designed and well-located projects will hold better,” said Margaret Thean, Executive Director for Residential at DTZ.
Meanwhile, the demand for private homes remains positive despite the volatility in the stock market and economic woes in the US and Europe.
Primary home sales averaged 1,373 units per month in July and August, while secondary home sales averaged 1,278 units per month in the same period.
In addition, the demand in the market was seen mostly in suburban areas. Sales in the Core Central Region (CCR) comprised 6.8 percent of total primary sales and 21.6 percent of total secondary sales in July and August.
“As many of these buyers are buying for owner-occupation and investment beyond four years due to the seller’s stamp duty (SSD) measure, they probably take a longer-term view and are thus less worried about the current global economic uncertainties,” said Chua Chor Hoon, Head of DTZ SEA Research.
“However, if the global outlook worsens and the economy continues to slow down, this will eventually affect buying sentiment and lead to less exuberant purchase activity.”
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