Landed properties still in hot demand

Landed properties still in hot demand

Landed home prices moved up a notch in the second quarter as demand for the pricey properties stayed buoyant.
Values increased 0.4 per cent from the previous three months, according to the Urban Redevelopment Authority (URA) index out yesterday.

Terraced homes showed the largest increase at 1.2 per cent, followed by semi-detached at 0.6 per cent, while detached homes declined by 0.4 per cent. Property consultants noted that landed home prices have outperformed those of private flats since the third quarter of 2010.

Over the last seven years, prices of such homes have doubled. They are perceived as better investment given the limited supply of landed properties in land-scarce Singapore with a growing population, rising affluence of local families and influx of new wealthy citizens.

One example of the robust sector can be found at Haus@Serangoon Garden where buyers have snapped up 39 out of 50 landed houses released in just two weeks.

The two-storey homes - with an attic and basement - developed by City Developments and Hong Realty do not come cheap. A 1,615 sq ft intermediate terraced unit goes for at least $2.4 million while at least $2.8 million is needed for a 2,284 sq ft corner home.<

Terraced homes in the west - favoured for its lower absolute prices - have risen 97 per cent in the past three years while those in the east and north-east were up 89 per cent

Consultants said demand for landed properties is expected to stay resilient given the limited pool of freehold landed properties find their share of the total housing stock shrink over time. Relatively quick capital gains will make it a superior hedge against inflation too.

But well-heeled buyers may look to non-landed homes in prime locations for their better rental yields and demand.

Source: The Straits Times – 28 July 2012