Semi-detached home prices hit a record high in Q2 2014, defying the trend in the private residential market, according to the latest data from the Urban Redevelopment Authority (URA) reported in the media.
In the second quarter, prices of semi-Ds rose 4.2 percent compared to the previous quarter. In contrast, all other segments in the private housing sector have posted either flat or falling prices.
As a result, the price index for semi-detached houses nearly equalled that of bungalows in Q2, making it the first time it has occurred since 2009. The URA’s index is based on psf prices of transactions during the period, but it does not specify actual psf prices.
The median price of semi-Ds ($853 psf) also surpassed that of bungalow’s ($784 psf). On a quarter-on-quarter basis, terrace houses suffered a higher price drop of 4 percent, while that of bungalows declined by 3.1 percent.
Consequently, the overall prices of landed homes slid by 1.7 percent in the second quarter versus the 0.7 percent dip seen in Q1 2014.
Although the prices of semi-detached houses reached an all-time high, it’s still too early to tell whether the increase was a one-time occurrence, or an indication of a long-term uptrend as there were only five semi-Ds transacted in Q2 and one bungalow.
The limited number of transactions could distort price statistics, explained Nicholas Mak, Research Head at SLP International.
Image source: Wikimedia Commons/User: ProjectManhattan