Landed homes prices rising fast

Prices of resale landed homes grew faster than their non-landed counterparts during the first half of 2013, according to survey conducted by DTZ.

In prime Districts 9, 10 and 11, prices of freehold landed homes rose 3.1 percent while those of freehold apartment increased only by one percent. For leasehold landed homes, resale prices rose 5.1 percent in suburban districts compared to only 2.2 percent for apartments.

However, suburban freehold landed homes rose by only 2.6 percent — the lowest increase in the landed segment although still slightly higher than suburban freehold apartments.

“In general, landed prices have risen more strongly than non-landed,” said Lee Lay Keng, DTZ’s head of Singapore research.

Meanwhile, terrace homes, both leasehold or freehold, were the most popular choice in the landed home market. Resale prices of these home types climbed between 4.1 percent and 5.6 percent both in prime and suburban areas, while resale prices of semi-detached and detached homes posted an increase of 0.5 percent to 2.7 percent across the board.

DTZ expects landed home prices to continue to increase at a faster rate than apartment prices in 2H 2013.

The URA data revealed that around 495 landed homes could be available for sale in prime districts 9, 10 and 11, which translates to only 4.5 percent of the overall number of landed homes within the said districts, noted DTZ.

Around 33,000 non-landed homes are anticipated to be launched nationwide compared to only 2,000 landed homes, based on the various GLS sites sold or available as well as projects that are still on the board.

“On the back of a limited pipeline supply (of landed homes), we expect the outperformance to continue into the second half of 2013,” said Lee.

Source – PropGuru – 25 Jun 2013

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