According to the analysis of CB Richard Ellis (CBRE) of the caveats data, the median price for new 99-year leasehold apartments and condos per square foot (psf) that were sold by the developers had an increased by 16.5 percent in the third quarter, which is more than twice the increase of 7.8 percent quarter-on-quarter seen in the previous quarter.
CBRE based its study on the caveats data that was downloaded from the Realis system of the Urban Redevelopment Authority (URA) on 15 September this year.
Joseph Tan, executive director (residential) of CBRE, said, “Prices of new projects are always a function of new launches. We have seen the launch of some high quality projects with good attributes such as those near MRT stations in the past three months”.
The said study showed an almost across-the-border increase on the median prices of psf this quarter thus far in the primary and secondary markets, compared to the second quarter. It also showed a median psf price increase for 99-year leasehold and freehold/999-year leasehold term of properties.
Minister Mah Bow Tan of the National Development told Parliament last Monday that the overall prices of private housing started its significant increase since June. He stated this while making the announcement of the measures to cool down the overheating property market.
Among the measures of the government is the scrapping of the interest absorption scheme (IAS) and the restarting of the confirmed list of land sales in the first six months of 2010. Also, the government will enhance supply on the reserve list for the first half of next year so as to meet the possible increase on the demand.
CBRE stated that the median price of non-landed private home units sold by various developers for 999-year leasehold and freehold are appreciated this quarter at 30.8 percent to $1,241 psf over the previous quarter, after having a 9.7 percent quarter-on-quarter fall in the second quarter.
Besides the listing of the median prices of psf, the real estate firm also analysed the median price of the quantum per unit. The recorded figure of developers’ sales for 99-year leasehold on non-landed private home units had an increase of 11 percent from $824,967 in the second quarter to $916,000 in the third quarter of the year.
CBRE, in view of the direction of the private home prices, stated, “Further price increases will be checked because they had climbed substantially in the past six months and some resistance can be expected”.
In a research note of Deutsche Bank after the announcement on Monday, it said that since the bottomed out of private residential prices this year from February to March, developers are increasing their prices month-on-month on all segments by 2 to 6 percent.
The report, which was written by analyst Elaine Khoo and strategist Gregory Lui, added, “And in the secondary market, prices for some of the projects we track have increased by around 10-40 per cent from recent lows”.
Yesterday, CBRE said that the sales momentum this coming quarter will probably moderate following the measures done this week in the stabilisation of the property market and with less launches of major projects.