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mr funny
23-12-10, 15:30
http://www.businesstimes.com.sg/sub/news/story/0,4574,418531-1293047940,00.html?

Published December 22, 2010

Landed homes' capital values rise faster than apartments, condos

Average cap value of prime resale freehold landed homes up 5.1% in Q4

By KALPANA RASHIWALA


AVERAGE cap values of landed homes in Singapore have risen at a faster clip than those of private apartments/condos in the fourth quarter as well as the whole of this year, show latest figures from DTZ.

DTZ's analysis referred only to resale landed and non-landed homes, that is, properties that had already obtained Certificate of Statutory Completion.

'The limited stock of landed homes has made them prized assets, especially those in the prime districts. Landed homes currently account for about 26 per cent of Singapore's total private housing stock (including executive condos), with very limited supply in the pipeline. In contrast, the supply of non-landed private homes is injected at a faster pace via the Government Land Sales programme and collective sales,' says DTZ's Southeast Asia research head Chua Chor Hoon.

The average capital value of prime resale freehold landed homes stood at $1,693 per square foot (psf) on land area in Q4 2010, up 5.1 per cent from the previous quarter, taking the full-year increase to 17 per cent. For suburban freehold landed houses, the average capital value increased 4.3 per cent quarter on quarter to $993 psf in Q4, resulting in a full-year appreciation of 15.5 per cent.

In the non-landed segment, the average cap value for 99-year suburban condos remained unchanged at $660 psf on strata area in Q4 2010, taking the appreciation for the whole of 2010 to 8 per cent. The average price of prime freehold condos increased 0.4 per cent quarter on quarter to $1,520 psf in Q4, also reflecting an 8 per cent full-year price gain.

DTZ said prices in these two segments are hitting resistance, having risen by about 18 per cent and 36 per cent since their respective Q1 2009 troughs following the global financial crisis. The latest cap values are also above the respective Q4 2007 peak levels, it noted.

'Greater prudence is also being exercised on buyers' part following the latest property cooling measures introduced on Aug 30. Buyers are more selective and prefer projects with good location attributes such as proximity to MRT stations, schools or the central business district,' DTZ said.

On the other hand, the Q4 2010 average cap value of freehold luxury condos (above 2,500 sq ft) in the prime districts was $2,630 psf, about 6 per cent shy of the Q4 2007 peak of $2,800 psf. The latest Q4 figure was unchanged from the preceding three months while the full-year 2010 increase was 9.6 per cent.

'With a limited pool of buyers being able to afford these luxurious units which require a large quantum sum, this segment has seen more subdued purchasing activity,' DTZ said.

The firm's executive director (residential) Margaret Thean said: 'Although there's less activity in the high-end segment, we're still seeing strong interest from Chinese and Indian nationals, and increasingly from institutional investors such as funds. They have confidence in future price growth due to Singapore's strong economic fundamentals. As for individual foreigners buying for owner occupation, completed developments near renowned schools particularly interest them.'

Ms Chua predicts that resale prices of 99-year suburban condos are likely to remain flattish next year while those of prime freehold condos could rise by up to 5 per cent if there is more buying from foreigners due to the clampdown on property purchases in their home countries.

She expects prices of landed homes to continue to outperform those of apartments and condos due to their relative scarcity appeal.

mr funny
23-12-10, 15:30
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mr funny
23-12-10, 16:02
http://www.straitstimes.com/Money/Story/STIStory_616315.html

Dec 22, 2010

Resale condo prices flat but landed prices climbing

Analysts see moderate rises next year

By Cheryl Lim


PRICES of resale condominium units have stayed more or less flat over the past six months though landed property performed strongly, according to new data analysed by consultancy DTZ Research.

One factor behind the steady trend for non-landed resale homes is that they had already risen sharply, it suggests.

Another is that home buyers are exercising greater prudence after market cooling measures introduced by the Government on Aug 30 to quell speculation.

But it is a completely different picture for the upscale landed homes segment.

Landed freehold units in the prime districts have seen prices rise 5.1 per cent this quarter from the previous quarter. Prices are about $1,693 per sq ft (psf).

Even outside prime districts, landed homes have posted strong price rises of 4.3 per cent to an average $993 psf.

Since the start of the year, landed property prices have risen about 16 per cent. Against the second quarter of last year, when prices started to rise, the jump has been even sharper at 37 per cent.

In a report, DTZ's head of South-east Asia research Chua Chor Hoon said the limited stock of landed properties has made them desirable, especially those in the prime districts.

This contrasts with the non-landed category where government land sales and collective sales have boosted supply.

DTZ highlighted two key segments in its report on resale homes: mass market condos in suburban areas and condos in prime districts 9, 10 and 11.

Mass market condo prices are closely watched as they are the first rung up the property ladder for HDB upgraders.

After leading the overall prices for two straight quarters, resale prices for the mass market segment have taken a breather. They remained unchanged at an average of $660 psf in the fourth quarter compared with the third.

Prime district condos prices moved up slightly to $1,520 psf, rising 0.4 per cent compared to the previous quarter.

Average prices for both segments are up almost 8 per cent for all of 2010, lifting above 2007 levels.

Over the past seven quarters, prices of mass market condos have risen 18 per cent while prime district condos have surged 36 per cent.

Another segment, luxury condos, has still not reached its 2007 record levels. DTZ said that at an average resale price of $2,630 psf, this is the only segment with prices still 6 per cent under 2007 levels.

Looking ahead, Ms Chua said prices for resale non-landed projects next year are not likely to rise much.

'The August measures are affecting the Housing Board market and this could result in a filter down effect in the first half of next year,' said Ms Chua. '(Cash-over-valuation) has gone down and its impact is already being felt in the market, and could in turn affect the upgraders' budgets and market.'

Other analysts agree. They expect next year's overall price growth for the private property sector to remain moderate. The main factor is that prices have already risen sharply.

Credo Real Estate executive director Ong Teck Hui said: 'As we're at an advanced stage of the up-cycle, the price increases are likely to be more moderate. We could see average price increases of 2-4 per cent per quarter in 2011.'

Another factor will be the global economic climate - especially in the luxury segment. Knight Frank associate director and head of research and consultancy Png Poh Soon said: 'Buyers of higher-end property will assess the economic outlook and changes before deciding where to put their money. They will come if the local economy continues to grow.'

A record 15,025 new private homes were sold in the first 11 months of the year, the Urban Redevelopment Authority said recently, surpassing the previous peak of 14,811 in 2007.

These figures, said Credo's Mr Ong, show that there is relatively strong interest in the market and this demand will probably spill over into the new year.

Property prices move in tandem with the country's economic growth, said Knight Frank's Mr Png. This year, Singapore's economic growth rate is expected at up to 15 per cent. Mr Png said overall property prices are up about 20 per cent this year.

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