Capital values for landed homes rising faster than apartments/condos

The BT today reported that the average capital values of landed homes in Singapore have risen at a faster clip than those of private apartments/condos in the 4th quarter as well as the whole of this year. This is according to latest figures from DTZ.

DTZ’s analysis referred only to resale landed and non-landed homes, that is, properties that had already obtained Certificate of Statutory Completion.


The average capital value of prime resale freehold landed homes stood at $1,693psf on land area in Q4 2010, up 5.1% from the previous quarter, taking the full-year increase to 17%. For suburban freehold landed houses, the average capital value increased 4.3% quarter on quarter to $993psf in Q4, resulting in a full-year appreciation of 15.5%.

In the non-landed segment, the average capital value for 99-year suburban condos remained unchanged at $660psf on strata area in Q4 2010, taking the appreciation for the whole of 2010 to 8%.

The average price of prime freehold condos increased 0.4% quarter on quarter to $1,520psf in Q4, also reflecting an 8% full-year price gain.

DTZ said prices in these two segments are hitting resistance, having risen by about 18% and 36% since their respective Q1 2009 troughs following the global financial crisis. The latest capital values are also above the respective Q4 2007 peak levels, it noted.

On the other hand, the Q4 2010 average capital value of freehold luxury condos (above 2,500sqft) in the prime districts was $2,630psf, about 6% shy of the Q4 2007 peak of $2,800psf. The latest Q4 figure was unchanged from the preceding three months while the full-year 2010 increase was 9.6%.

Ms Chua Chor Hoon, DTZ’s Southeast Asia research head, predicts that resale prices of 99-year suburban condos are likely to remain flattish next year while those of prime freehold condos could rise by up to 55 if there is more buying from foreigners due to the clampdown on property purchases in their home countries.

She expects prices of landed homes to continue to outperform those of apartments and condos due to their relative scarcity appeal.

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