Private home prices and rents across all sectors continued to rise in 2011, albeit at a slower pace than in 2010, amid hefty cooling measures such as the seller’s stamp duty and reduction in loan-to-value (LTV) limit. The take-up for the year is projected to be similar to 2010.
The average resale price of suburban leasehold condominiums in 2011 marked the fastest growth rate in the non-landed segment, according to several completed condominiums tracked by DTZ and UGL Services, a division of UGL Ltd.
As for rents, suburban condominiums saw the most growth in 2011 at 8.9 percent year-on-year, better than prime district condominiums. Rental growth in luxury condominiums, on the other hand, was the slowest at 1.3 percent year-on-year.
Demand for rents in suburban condominiums rose due to the growing number of foreigners with low housing allowances.
Suburban condominium rents grew 1.5 percent quarter-on-quarter, while rents of prime and luxury condominiums dropped 1.6 percent and 2.6 percent quarter-on-quarter respectively in Q4 2011.
Completions in the prime districts hit 3,330 in the first three quarters of 2011 but declined in Q4 due to seasonal slowdown.
“Even though companies may hold back their expansion plans or introduce cost cutting measures such as reducing housing allowances in light of the current economic uncertainties, the rental market is expected to be more active in 2012,” said Margaret Thean, Executive Director, Residential for DTZ.
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