RESALE prices of landed homes rose at a faster rate than that of apartments in the first half of the year, according to a report yesterday.
The DTZ survey detailed price rises for various categories of freehold and leasehold homes across the island to give an overall picture of the market.
It found that prices of freehold landed homes in the prime districts of 9, 10 and 11 rose 3.1 per cent in the first six months of the year while freehold apartment values rose only 1 per cent.
In suburban districts, resale prices of leasehold landed homes rose 5.1 per cent while apartments recorded a price growth of only 2.2 per cent. However, prices of suburban landed freehold homes rose just 2.6 per cent - the lowest rise in the landed segment but still a tad ahead of the 2.5 per cent increase for suburban freehold apartments.
"In general, landed prices have risen more strongly than non- landed," said DTZ's head of Singapore research, Ms Lee Lay Keng.
Terrace houses, whether freehold or leasehold, were the hottest segment in the landed home market.
Resale prices for both freehold and leasehold terrace homes located in prime and suburban areas rose by between 4.1 per cent and 5.6 per cent in the first half of the year, while resale prices of detached and semi-detached homes across the board increased by 0.5 per cent to 2.7 per cent, she noted.
DTZ said it expects prices of landed homes to continue to rise at a faster rate than those of apartments in the second half of this year.
Data from the Urban Redevelopment Authority in the first quarter showed that about 495 landed homes could be available for sale in the prime districts 9, 10 and 11. These include the 140 units that could be built on the Coronation Road site which was sold when the Government Land Sales (GLS) tender closed yesterday.
This would represent only 4.5 per cent of the total number of landed homes in districts 9, 10 and 11, said DTZ.
In addition, about 33,000 non-landed homes are expected to be launched islandwide compared to 2,000 landed homes, going by the various GLS sites that have been sold or are available and projects on the drawing board.
"On the back of a limited pipeline supply (of landed homes), we expect the outperformance to continue into the second half of 2013," said Ms Lee.
DTZ also noted that foreign buyers were less deterred by the cooling measures implemented in January and continued to snap up homes in the luxury segment.
"Notwithstanding that some caveats for purchases in May and June may not have been lodged yet, there were already 28 foreign purchases costing more than $5 million in the non-landed resale market in the first half of 2013, higher than the 24 made in the second half of 2012," noted DTZ executive director of residential Margaret Thean.
Ms Thean noted that foreigners who buy such high-end homes have deep pockets and a longer investment horizon, and so recognise the long-term potential of freehold non-landed units in prime locations.
DTZ also expects that sales of new homes in the luxury segment will increase as buyers scout around for trophy assets.
These condos include Far East Organization's Ferra, designed by Italian car designer Paolo Pininfarina.
Prices start from $2.3 million for a 732 sq ft unit.