Singapore property prices and rent climb at slower pace

Demand for rents in suburban condominiums rose thanks to the growing number of foreigners with low housing allowances.

Completions within the prime districts hit 3,330 in the primary three quarters of 2011 however declined in Q4 thanks to seasonal slowdown.

Suburban condominium rents grew one.5 % quarter-on-quarter, while rents of prime and luxury condominiums dropped one.6 p.c and 2.half-dozen % quarter-on-quarter respectively in Q4 2011.

As for rents, suburban condominiums saw the most growth in 201one at 8.9 p.c year-on-year, better than prime district condominiums. Rental growth in luxury condominiums, on the opposite hand, was the slowest at 1.three percent year-on-year.

The average resale price of suburban leasehold condominiums in 201one marked the fastest growth rate within the non-landed segment, according to many completed condominiums tracked by DTZ and UGL Services, a division of UGL Ltd.

Private home prices and rents across all sectors continued to rise in 201one, albeit at a slower pace than in 2010, amid hefty cooling measures such as the vendor’s stamp duty and reduction in loan-to-value (LTV) limit. The take-up for the year is projected to be kind of like 2010.

“Even though companies might hold back their growth plans or introduce value cutting measures like reducing housing allowances in light-weight of this economic uncertainties, the rental market is predicted to be more active in 2012,” said Margaret Thean, Executive Director, Residential for DTZ.

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