After reaching the lowest point in Q1 of 2009 due to the upshot of the global financial crisis, the DTZ’s latest figures show that completed non-landed and landed private home prices in different segments have continued to recover in Q3.
The average price of completed freehold prime district condominiums reflected one of the greatest price gains, an increase of 22.3 percent from the current low of $1,120 per sq ft in the first quarter to $1,370 per sq ft in the third quarter.
“As more buyers were drawn to the market, average private home prices continued on the uptrend in Q3 2009, led by smaller homes in the prime districts of 9, 10 and 11,” explained the DTZ.
An increase of 17 percent to $2,200 per sq ft in the third quarter from $1,880 per sq ft in the first quarter was seen in the mean capital value for completed freehold luxury condominiums of DTZ. However, compared to the unparalleled high in late 2007 and early 2008 of $2,800 per sq ft, the recent figure is still 21.4 percent shy.
The recovery in prices and home buying in the second quarter and third quarter of 2009 also rubbed off on the segment of landed homes. Based on the data presented by DTZ, in the prime districts 11, 10 and 9, the average price of completed freehold landed homes appreciated by 15.9 percent, scaling a fresh peak of $1,383 per sq ft of land area in the third quarter from the recent low in the first quarter.
Also, in the 99-year suburban landed market, the mean capital value of $593 per sq ft in the third quarter showed a growth from the first quarter by 9.4 percent.
The landed housing baskets of DTZ excluded the Good Class Bungalows (GCB), wherein the values have also increased. The basket for both condos and landed homes only cover completed projects.
“We’ve seen strong interest in landed properties in Q3 – whether it’s bungalows, terrace houses or semi-detached homes. Buyers are mostly owner occupiers,” stated Chua Chor Hoon, South East Asia research head of DTZ.
“The general home buying sentiment has spilled over to the landed segment. Landed property prices did not move up as much as condo prices in the 2007 run-up.”
While the average quarterly gain in suburban condo prices were stronger for the third quarter as compared for the second quarter, appreciation for home prices slowed in the third quarter for luxury condos and prime district.
Every quarter, freehold condos’ average capital value in prime districts surged in the second quarter by 11.3 percent and by 9.9 percent in the third quarter. For the luxury freehold condos, the average price appreciated in the second quarter by 9.6 percent and by 6.8 percent in the third quarter.
After the decline in the four straight quarters, DTZ claimed that rental values are now becoming more stable.