With high-end property developers banking on the exclusive locations of their projects, the luxury residential segment could see slower price declines of around 0.5 percent in Q1 2014 as compared to the previous quarter, according to Knight Frank.
In spite of the latest cooling measures, good-priced choice project launches by top developers at strategic locations are expected to do well, said the property consultancy.
Meanwhile, prices of mass market homes in the outside central region (OCR) could decline by 0.3 percent to 0.5 percent quarter-on-quarter due to softer demand, as HDB upgraders have little incentive to upgrade to private houses due to decreasing Cash-over-Valuation of HDB resale flats.
However, this segment is projected to become more competitive due to a larger supply of Executive Condominiums and a constant supply of GLS land sites in the past few years.
“Conversely, there exists some potential in the mid-tier segment, given the superior locations of RCR projects compared to suburban areas, and the narrowing price gap between mass market and mid-tier private homes,” noted Knight Frank.
As such, prices of mid-tier homes in the rest of central region (RCR) could slightly increase by about 0.2 percent in Q1 2014 as compared to the previous quarter, in view of upcoming project launches in prime locations.
Nikki De Guzman, Junior Journalist at PropertyGuru, wrote this story. To contact her about this or other stories email nikki@propertyguru.com.sg
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