Compared to non-landed properties, landed homes are drawing forth rich buyers willing to pay big bucks for land of their own. Terrace houses in particular have been rising in prices at a much quicker rate than apartments.
According to a recent DTZ survey, freehold landed homes in prime districts 9, 10 and 11 rose 3.1 per cent in H1 of 2013. In comparison, freehold non-landed homes only rose 1 per cent. Even leasehold landed properties have become rising stars in the suburbs, with a rise of 5.1 per cent, more than double that of apartments’ rise of 2.2 per cent. Freehold landed homes in the suburbs however did not perform as well as their leasehold counterparts, with a rise of only 2.6 per cent. Perhaps outside of the prime districts, the variety of new and resale condominiums have taken some shine away from the lure of owning a landed home.
In H2, landed properties are expected to take the lead in rising housing prices. A new wave of new properties, both landed and non-landed, are expected to enter the market in H2. This includes about 495 landed homes in the prime districts 9, 10 and 11 or 2,000 islandwide, and 33,000 high-rise residential apartments.
Foreign buyers have only taken a short hiatus from the property investment market and are back in the market, snapping up units in the luxury segment. The effects of January’s cooling measures have been almost entirely forgotten. Most of this new wave of foreign investors are now armed with deeper pockets and stronger holding power. What they aim for are long-term investment opportunities and new luxury properties are expected to benefit as well. Ferra condominium by Far East Organization, designed by Italian car designer, Paolo Pininfarina, is one such property. Prices are expected to start from $2.3 million for a 721 sq ft unit.