Housing demand remains strong in 1Q2013, despite cooling measures

According to a quarterly report by Knight Frank, overall private home prices grew 0.5% in 1Q2013. March was a record month, with developer sales reaching 2,793 units, mainly from major suburban condo launches such as D’Nest in Pasir Ris, Urban Vista in Tanah Merah, Trilinq in Clementi, Bartley Ridge in Mount Vernon and Hillion Residences in Bukit Panjang. The number of new home sales for 1Q2013 totalled 5,533 units, or about 27% higher than in 4Q2012, according to Knight Frank Research. The property consultant attributes the buying frenzy to fears that another round of property-cooling measures was imminent.

While residential property prices are still growing, the pace is much slower. Price growth was strongest in the suburbs, or Outside Central region, at 1.7%, as at end-1Q2013. Overall private home prices increased 3.4% y-o-y in 1Q2013, the highest y-o-y increase since 2Q2012, according to Knight Frank.

As for residential leasing, the mid-tier segment grew 4.1% to $5.15 psf per month in 1Q2013, showing stronger growth relative to the mass market, which grew just 0.7% to $3.36 psf per month, and the high-end segment, which fell 0.6% to $5.84 psf per month.

Source – TheEdge – 29 Apr 2013

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