Homes in the primary market, or new ones sold by developers to owners, traditionally cost five to eight per cent more than those in the secondary or resale market. But this gap is growing to between 10 and 20 per cent as the Singapore property market heats up.
Developers have sold more than 10,000 new private homes to date in 2009, more than double the total in 2008.
And while sales in the secondary market have kept pace, analysts said prices have risen slower, which is characteristic of the segment.
Eugene Lim, associate director, ERA Asia Pacific, said: “The current market is on an upswing so we are looking at the price difference between old properties and new properties in a range of 10 to 20 per cent, versus a low market scenario where you see a difference of five to eight per cent.”
Locations where few new developments have been launched are likely to see the largest gaps between new and resale homes. Continue reading
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