Tag Archives: Luxury home market

Resale condo values down 5-9% after TDSR ruling

Posted on 18 Oct 2014 | Comments Off on Resale condo values down 5-9% after TDSR ruling

Average resale values of completed freehold non-landed residential properties in Singapore’s luxury and prime areas fell the most in Q3 2014 from the quarter before – by 2.5 and 2.0 percent respectively, revealed DTZ.

The decline was lesser in the non-prime areas, with average freehold resale values dropping by 1.5 percent in Q3 from the previous three months.

Comparatively, leasehold values decreased slightly more by 2.0 percent in the period.

The report also stated that average resale values of non-landed residential properties have fallen by about 5.0 to 9.0 percent since the introduction of the TDSR framework at the end of June 2013.

Meanwhile, the landed property segment became weaker in Q3, with average resale prices falling at a faster rate compared to Q2 across both the prime and non-prime areas.

In prime districts 9, 10 and 11, only the detached segment stayed firm, but average resale prices of both semi-detached and terrace houses posted a 2.0 percent decline quarter-quarter in Q3.

Over in the suburban areas, average resale prices of freehold landed homes decreased by 2.2 percent in the third quarter, slightly faster than the previous 2.0 percent drop.

According to the consultancy, the private residential market remains a buyers’ market. “The increasing inventory from unsold units that have already been launched and upcoming launches will continue to provide buyers with many options and aid in sustaining a buyers’ market for the months ahead,” said Lee Lay Keng, DTZ’s Regional Head (SEA) Research.

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Luxury home market takes a tumble

Posted on 7 Jan 2014 | Comments Off on Luxury home market takes a tumble

Some luxury home owners who bought during market highs are now experiencing losses of up to $1.2 million as prices of posh homes take a tumble.

Experts say losses on that scale are sporadic, but noted that the luxury market is clearly softening in the wake of various government curbs.

Flash estimates released by the Urban Redevelopment Authority showed that luxury home prices fell by 2.1% last year – reversing the 0.8% rise recorded in 2012. This is likely attributed to the introduction of heavier stamp duties in 2013, which drove investors and foreigners away from the luxury home market. As a result, just 4,041 homes were sold in the prime districts which feature many upscale homes in 2013, down 20% from 5,094 luxury homes sold in 2012.

Case in point is a 1,679 sq ft unit at Paterson Suites that suffered a loss of about $890,000. It was bought for about $4.5 million in June 2007, but sold at $3.61 million in November 2013. This translates to a selling price of $2,150 per sq ft – a new low for the upscale project.

At the coveted housing district of Sentosa Cove, a 2,820 sq ft unit at The Coast took an even bigger hit of at least $1.2 million, when it was sold for $4.8 million in December 2013. It was bought in January 2011 for $6 million.

Overall, experts expect prime property prices to slide even further as developers move to slash prices. Foreign developers are given two years to sell all units, after their developments obtain a temporary occupation permit. To avoid penalty charges for missing the deadline, developers are left with no choice but to lower prices to move units.

By Getty Goh

Source : buybyeproperty – 7 Jan 2014

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