Landed Property Prices of Suburban Still Up

Still Up: Prices of suburban landed homes

Prices of landed homes in areas such as Bishan and Ang Mo Kio have surged in the past year even while those in the more central Watten Estate and Novena areas have dipped.

The price movements signal that cost-conscious buyers are increasingly shunning expensive inner-city property for more affordable homes on the fringes.

Average resale prices in District 20 - which includes Bishan, Ang Mo Kio, Braddell Road and Thomson - rose to $1,266 per sq ft (psf) of land area in the three months to Sept 30.

This is up from $1,028 psf in the same period last year, according to the Singapore Real Estate Exchange (SRX) last week. The 23.2 per cent increase is well above the 16 per cent rise in overall average prices for the landed segment in the same period.

District 16 - made up largely of Bedok, Upper East Coast and Kew Drive - recorded the next highest price rise, with values up 22 per cent in the period, while District 23, comprising areas such as Hillview, Dairy Farm and Bukit Panjang, racked up an average increase of 21.5 per cent.

But prices in prime District 11 - covering Watten Estate and Novena - dipped 0.7 per cent to $1,483 psf. It was the only landed home district that recorded an average price drop.

Experts say the introduction of the additional buyer's stamp duty (ABSD) last December could have affected the demand for centrally located landed homes.

Prices of leasehold terraced homes in suburban areas lodged the highest increase of 8.5 per cent in the third quarter compared with a year ago.

In the prime 9, 10 and 11 districts, prices of freehold terraced homes rose 4.5 per cent.

The Serangoon planning area recorded the highest number of sales in the third quarter, possibly indicating its growing popularity among buyers. About 160 landed homes were sold, 33 per cent more than the quarter before.

The SRX collates transactions by major property agencies, which account for more than 80 per cent of the landed market.

Districts with fewer than 10 transactions for at least one of the quarters being compared were left out of the analysis.

The remaining districts surveyed recorded gains of between 7 per cent and 23 per cent.

Source: The Straits Times –12 November 2012