In recent times, you’ll be hard pressed to find private condo units priced below $1, 000 psf. And as we move ahead, it looks even more unlikely. How has the market truly changed since the first implementations of the property cooling measures and are they truly meant to reduce property prices or merely to gently put on the brakes at timed pauses along the path of increasing home prices?
Recent numbers showed that 60% of the private property transactions completed in Q2 were priced at $1, 000 psf and above. In the same time in 2011, the percentage was only at 25.5 per cent. As some industry experts predicted, home buyers may not necessarily be deterred by the rising home prices as long as prices remain seemingly affordable. A $1.2 million suburban non-landed private property is more the norm than the exception, especially for the last couple of years.
What’s more, the proportion of properties priced above $1, 500 psf have also be increasing from 0.5 per cent in Q2 of 2011 to 14.2 per cent in Q2 of 2013. Some of the recent launches which were priced in this range are J Gateway in Jurong East, the Tembusu in Kovan and Centro Residences in Ang Mo Kio. Units at J Gateway went for as much as $1, 774 psf for a 484 sq ft shoebox apartment, while a unit of similar size went for $1, 687 psf at the Tembusu. At Centro Residences, prices soared as high as $1, 920 psf.
Current property market prices almost dictates an acceptable first home to be priced between $950, 000 to $1.1 million. Market analysts are however expecting higher resistance from buyers beyond the $1.2 million mark. But a continued rise in property prices is probable, though possibly a subtle one, due to the most recent loan restrictions.