International real estate experts at Savills have identified the peak in Singapore’s luxury and super-luxury home markets. The former started slipping downward once it reached $2,243 (S) per square foot, and latter climbed to $3,681 before it fell 0.4% in the second quarter of 2011. The peak has not convinced buyers to commit, however, with sales in both segments slightly down. Singapore continues to enjoy a robust real estate market across the board, though, and mass-market properties are also up 2% for the quarter. For more on this continue reading the following article from Property Wire.
The private home market in Singapore may have continued to enjoy robust turnover in the third quarter of this year but the prices of luxury apartments appear to have peaked, according to international real estate consultants.
The average price per square foot for non landed high end private homes fell 2% to S$2,243 for the first two months of the third quarter from S$2,286 in the second quarter of this year, according to Savills.
In the super luxury segment, prices slipped marginally, by 0.4% to S$3,667 per square foot from S$3,681 per square foot.
Compared to the prices at the start of the year, high end homes cost 0.7% less, while super luxury prices increased by 8.4%.
Savills said the price gaps between the current and previous price peaks in the fourth quarter of 2007 narrowed further, with high end and super luxury home prices being just 6.9% and 0.4% from their peak levels, respectively.
But Savills warned that the outlook for the luxury home segment remains clouded as high end properties saw poor sales in the first two months of the third quarter of 2011. In July, only 122 units were transacted in the Core Central Region and sales were almost halved in August with 65 transactions.
Performance for the rest of the private home market was mixed. In the mid tier non landed homes segment, prices dipped marginally by 1.4% to S$1,193 per square foot in the first two months of the third quarter from S$1,210 per square foot in the second quarter.
Mass market apartment prices continued to increase, up 2% to S$932 per square foot in the first two months of the third quarter from S$913 per square foot in the second quarter. Savills said the increases were observed across all sectors. New sales were up 2%, sub sales up 5% and resales also up 2%.
In July, a total of 1,398 new private homes were sold, an 18% increase from the previous month. Including executive condominiums, the number of new home sales rose by a more significant 41% month on month to 1,966 units. In August, primary sales, excluding executive condominiums remained steady at 1,348 units.
This article was republished with permission from Property Wire.