Right after the launch of some new condominiums in Singapore suburbs, there has been a strong demand for these residential units which further contributed to a considerable price hike. Reports reveal that the prices of private homes are rising high consistently up to this third quarter of the year.
In comparison to the previous months, there has been an estimated rise of 3.4% in the prices of private homes; however, it is slightly down from the 3.5% mark of the second quarter. This growth in the prices was mainly triggered by some non-landed segments in the area where prices went up to 4.1% in comparison to 3.6% in the previous quarter and this growth has been observed even after the rise in mortgage rates in banking institutions.
For the suburban condos, the prices increased sharply with an estimated jump of 7% as the observed rise during the previous quarter was only 2.1%. This appears to be the fastest quarterly rise for suburb units right from the third quarter of the year 2009 when the market observed a considerable hike of 16.1%.
This entire scenario can be linked to the hike of median prices for all the non-landed homes. They have recently reported a growth of 18% while touching the record level of $2,093 psf in comparison to $1774 psf of the second quarter.
The sales of the new non-landed units in the suburban regions also increased to 1238 units during the third quarter; however, it was only 471 units in the second quarter of this year. The analysts in this field recently stated that the prices for all the major suburb launches led to a steep rise with the estimated price of $2,113 psf at Ang Mo Kio residence and $2100 psf at residential units available at Sky Eden@ Bedok.
In a recent interview, the senior analyst from One Global group said that investors and home buyers are well aware of the importance of new launches, mainly due to limited options available in suburban regions and this is why they are more attracted to these advantageous locations. As a result, the prices for various non-landed units located in prime districts increased by 2.3%, which is considerably faster than the 1.9% hike reported during the second quarter. On the other side, prices in city areas were reduced by 2.5% as the recorded price in the second quarter was 6.4%.
Meanwhile, experts report a rise of 1.2% in landed home prices during the third quarter. Low-interest rates, healthy property demands, and pandemic recovery appear to be the main reason behind improved price ranges of homes this year. Those who are interested to make a purchase of new residential units are advised to grab the best offers before the rise of interest rates. Chances are that the mixture of cooling measures with possible recession in year 2023 and widespread inflation may cause further hike in prices of private homes.
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