October 6, 2011, 11.24 am (Singapore time)
Landed homes' price growth outpace non-landed in Q3: DTZ
By CARINE LEE
The limited availability of landed homes drove the average resale price of leasehold landed homes in non-prime districts up 3.8 per cent quarter-on-quarter, while non-landed leasehold condominiums in suburban areas grew at a slower pace of 2.5 per cent quarter-on-quarter.
Freehold landed homes in the prime districts of 9, 10 and 11 saw a quarter-on-quarter price increase of 2.8 per cent in Q3. In contrast, the average resale price of luxury condominiums in the prime districts of 9, 10 and 11 were unchanged in Q3.
According to DTZ Research, primary home sales averaged 1,373 units per month in July and August, slightly above the monthly average of 1,358 units over the last four quarters from Q3 2010 to Q2 2011.
Secondary home sales averaged 1,278 units per month in July and August, which was 23.2 per cent lower than the monthly average of 1,665 units sold in the secondary market from Q3 2010 to Q2 2011.
DTZ notes that as the lodging of caveats is voluntary and can be delayed, the number of secondary units actually sold in the secondary market could be higher.
'As many of these buyers are buying for owner-occupation and investment beyond four years due to the seller's stamp duty measure, they probably take a longer-term view and are thus less worried about the current global economic uncertainties. However, if the global outlook worsens and the economy continues to slow down, this will eventually affect buying sentiment and lead to less exuberant purchase activity,' said Chua Chor Hoon, head of DTZ SEA Research.
But positive growth for landed prices with a faster rate of growth than non-landed.
Singapore landed home prices grew at a higher rate than that of non-landed homes in the third quarter of 2011, said DTZ Research.