Published 26 May 2011
The Business Times
By Uma Shankari
Price of high-end, super luxury units up marginally in Q1: Savills
NON-LANDED luxury home prices tracked by Savills Singapore held steady in the first quarter of 2011, the property firm said yesterday.
According to the firm’s data, the average price of non-landed high-end private homes held steady at $2,269 per square foot (psf) in Q1, increasing marginally by 0.5 per cent quarter-on-quarter from $2,258 psf in Q4 2010.
Similarly, the average ‘super luxury’ residential price rose marginally by one per cent quarter-on-quarter to $3,417 psf from $3,383 psf in Q4 2010.
As a result, the price gap between current prices and previous peak in Q4 2007 is gradually closing, with high-end and super luxury home prices now just 5.9 per cent and 7.2 per cent below their peak levels.
Savills expects interest in luxury homes to be sustained in the longer term as the supply of land within this market segment is limited.
‘Well-located luxury homes with good product offerings may continue to command premium prices,’ said the firm in a report. ‘More overseas investors may also divert their investments here as the strong Singapore dollar can help them hedge against any fluctuations in the global exchange rate.’
In the rental market, the average monthly rent of high-end non-landed residential properties tracked by Savills continued to climb for a fifth successive quarter to $5.43 psf in Q1 2011. But the growth slowed to just 0.7 per cent quarter-on-quarter.
Most projects completed in Q1 were located in prime districts and the influx will exert some short-term pressure on prime rents going forward. But rents are expected to hold firm for good class bungalows and super luxury homes as supply is limited, Savills said.
‘Although rents for some high-end private homes may face short-term pressure from the new completions, the limited supply of land for this market segment in the long term could still see rents of good class bungalows and super luxury homes holding firm in the next few quarters,’ the firm said.
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