Landed home prices up sharply

Straits Times: Sat, Sep 18 PRICES for landed homes have rocketed this year, with the prime District 10 area recording increases of more than 40 per cent. The surging values have also sent records tumbling across the island as cashed up buyers jostle for real estate. Two new price quantum benchmarks were set in May: A semi-detached home, 1, Lermit Road in Tanglin, sold for $12.3 million, while a terrace at 83, Emerald Hill Road, near Somerset, went for a record $11.8 million. And last month, a terrace at 78, Emerald Hill Road sold for $7.3 million - a jaw-dropping record of $4,527 per square foot (psf). Sales have been robust in the key districts of 19, 15, 16 and 28, but District 10, which includes Bukit Timah, Holland and River Valley, has outstripped them all. CB Richard Ellis (CBRE) said the median price quantum of landed homes in District 10 shot up by 43 per cent from January to last month compared with the median price quantum for the whole of last year. This is a stark reversal over the 16.5 per cent price drop last year compared with 2008. District 16 - Upper East Coast, Bedok and part of Upper Changi Road East - was well back with a 15.6 per cent jump, while District 19 - Serangoon Garden and Yio Chu Kang - recorded a 14.5 per cent rise in prices this year. District 15 - Katong, Telok Kurau, East Coast Road and Siglap - recorded a 6.4 per cent gain, while District 28 rose 6.1 per cent. Last year, District 28 - Seletar Hills Estate, Luxus Hill and the Mimosa and Saraca areas - had the fastest growth, with prices up 34.3 per cent over 2008. Experts say District 10 is tops because owners had the holding power and would not sell unless the price was right. The roaring economy also meant that wealthy potential buyers were now looking for the best homes and heading to prime districts to find them. Mr Steven Tan, executive director of residential at OrangeTee agency, said the sale of 99-year leasehold Sentosa Cove houses at more than $2,000 psf has set new benchmarks for prime landed properties. This has left owners clamouring for ever higher prices in a sector that already has a limited supply. The recent property cooling measures could hit demand and transaction volumes over the next few months, although prices may hold up, say experts. The managing director of RealStar Premier Property, Mr William Wong, said landed properties were often more resilient than condominiums in weathering economic cycles as their limited supply meant demand was always relatively high. More PRs willing to pay higher prices were also going into the market, he said. Mr Wong played down the possible impact of the cooling measures: 'There are not that many speculators in the landed housing segment. Most usually take a mid- to long-term perspective on their purchases as well and take loans of less than 70 per cent...so they will not be as affected.' Mr Alexs Chua, managing director of property agency AC MacGyver, a specialist in landed homes, said prices have risen by about 20 per cent in areas such as Clementi Park over the past two years. District 15 prices were also catching up with District 10, with a recent bungalow at Branksome Road selling at $1,497 psf. This was comparable with the prices in District 10, which ranged between $1,300 and $1,800 psf, he said. 'Parents are also increasingly willing to shell out high prices for properties located near renowned primary schools,' Mr Chua said. CBRE's analysis of the Urban Redevelopment Authority record of caveats lodged found that 79 per cent of the 2,681 landed homes sold up to last month were to private home owners. This is up from the 70.5 per cent over all of last year. Buyers with Housing Board home addresses made up the remaining 564 transactions this year. [e-mail] Source: The Straits Times © Singapore Press Holdings Ltd