| SINGAPORE : In more evidence of a pick-up in Singapore's property market, fourth quarter private home prices climbed 1.3 percent from the previous three months, their largest gains in more than five years.
This is according to latest estimates from the Urban Redevelopment Authority.
Private home prices in the fourth quarter rose 1.3 percent from the previous three months, bringing total gains for the whole year to 3.8 percent.
Meanwhile, HDB resale prices inched up 0.2 percent in the fourth quarter, up from the previous three months.
Analysts say they expect demand for 3- and 4-bedroom HDB flats to remain strong.
For 2005, market-watchers say demand by foreign investors for luxury condos has driven much of the market action.
But for this year, they expect mid- to lower-end projects, or homes ranging between S$450 to S$550 per square feet, to see more activity.
Said Joseph Tan, residential director at CB Richard Ellis, "The reason why the broad-based market has not really kept in pace with the high-end sector is the lack of suitable or well-located upgrader-type projects. But going forward this year there is a possibility of prices for the mid-market to move up."
Analysts expect demand for private new homes to reach 8,500 for all of 2005, jumping by nearly half from last year.
Unsold units are now estimated at some 11,000.
That suggests increased prices for the year, because demand can be satisfied in about one year's time.
Said Donald Han, managing director at Cushman & Wakefield, "The inventory stock has also been reduced from 18,000, 19,000 to 11,000. So in that sense, we're coming to an equilibrium point in terms of the demand and supply. As a result, I think developers can now use the equilibrium to be able to dictate price. And we'll probably see a higher price increase for 2006 and we might be looking nearer to the double-digit gain."
Analysts say transacted prices for development sites have already seen an increase of as much as 20 percent from 2004. - CNA /ct |
