Tag Archives: Singapore Property Prices

Prime home prices may rise 18% by end 2010: UBS

Posted on 26 Aug 2009 | Comments Off on Prime home prices may rise 18% by end 2010: UBS

The analysts say mass launch prices have hit 2007 peak, and may stagnate

LAUNCH prices for new private homes rose 10 per cent and 18 per cent in prime and mass districts respectively in the first half of 2009, according to UBS Investment Research.

On the back of this, analysts Regina Lim and Michael Lim now expect prime prices to rise 18 per cent from here to 2007 peak by end 2010, as interest continues to improve and foreigners start to buy. However, luxury prices are not expected to reach the $4,000-$4,500 per square foot (psf) levels seen in 2007. By contrast, mass launch prices have reached the 2007 peak due to fervent buying by locals and prices could stagnate at current levels, the analysts said in an Aug 24 report: ‘For mass market launch prices, we believe they could stagnate at current levels after rising around 20 per cent in 2009.’

UBS’ research also showed that most of the demand for private homes this year came from local buyers. In the first seven months of 2009, Continue reading →

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Posted in Luxury Property, Property Market / Real Estate

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Gap in prices between new and resale homes grows

Posted on 24 Aug 2009 | Comments Off on Gap in prices between new and resale homes grows

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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Posted in Property Market / Real Estate, Property Price

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