Softer fall in landed home prices

Due to tight supply of landed homes, this segment could see a smaller price drop compared to overall private housing market, according to media reports quoting property experts.

Landed home prices could dip two to six percent this year, while the private property market is expected to fall by five to eight percent.

Notably, these homes only account for 3.2 percent of the 76,300 private homes that are anticipated to be ready between 2014 and 2017, said SLP International’s Research Head Nicholas Mak.

“This indicates that the prices of landed homes could increase rapidly again when property prices recover in the future,” he noted.

GPS Alliance Chief Executive Jeffrey Hong added, “Genuine landed home buyers could come back in the second half of this year as prices bottom out.”

The prevailing scenario also offers buyers a chance to benefit from bargains in suburbs such as Loyang, Jurong, Bukit Batok and Sembawang, Hong added.

Due to their lower prices, terraced homes could see more transactions versus bungalows or semi-detached houses, added the experts.

Based on Urban Redevelopment Authority (URA) data released in April, landed homes saw a smaller dip of 0.7 percent compared to the 1.3 percent drop for overall private home prices in Q1 2014.

Source : Property Guru – 16 May 2014


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