Core City Centre Home Prices Rising Faster

Property rates in Singapore continue to fluctuate, with Home Prices in the central region remaining stable, while builders are reducing prices of property in the suburbs. As a result the price gap between residential projects in the rest of Singapore and the downtown projects. In 2013, the market for private homes had peaked according to study by Knight Frank, property specialists. However the total debt servicing ratio (TDSR) was introduced in 2013, and after this property rates, especially in the suburbs are showing some decline according to real estate experts due to the increased financial burden on home buyers. The data shows that core city centre centre prices are rising faster than other property segments in Singapore and this makes investing in city centre homes a better decision compared to other areas. Haus on Handy is located in the core city centre.

Central Core Region Home Prices

Typically properties in the Central Core Region(CCR) of Singapore are higher than that of homes in the rest of the core region (RCR) and outside the core region(OCR). However due to a number of factors like increase in demand, the gap in new home prices had reduced to its lowest in 2013, with CCR prices falling by 9.6{71b2ba7deeac5035eb25195d08b84fd34c049012bd9cc107195fdd9c9fdb194c}, while RCR and OCR home prices had increased by 3.3 percent and 11.3 percent. The decline in CCR home rates to their lowest in five years of $1919 psf were mainly because of projects like the Duo Residences, where the average sales price for 518 homes was $1989 psf, and D’Leedon where 669 home units had an average price of $1481 psf.

Core City Centre Investments Better than Outer City Centre

However in 2014, the average CCR home prices again rose because 290 units at Marina One Residential project sold at an average of $2250. As a result the gap in home prices in CCR and OCR increased from 83.2 percent from 67.8 percent in 2013. In 2015, the different in non-landed home rates in CCR, and OCR was 81 percent.The chief executive of PropNex realty, Mr. Gafoor said that buyers of prime properties in CCR are usually affluent, and are unlikely to be affected by Additional Buyers Stamp Duty (ABSD) and TDSR. However the customers for RCR and OCR homes are more likely to be bargain hunters, who take loans and are adversely affected by TDSR, ABSD.

Price Cuts in Outer Central Region Condos

Rates for OCR homes are competitive, with frequent price cuts, and rates at projects like the Trilinq and Panorama are lower in 2016 than what they were when these projects was launched . On the other hand the home prices for CCR projects like Robin Residences have increased in the same period. However experts like the CBRE Singapore head, Desmond Lim, claim that the price correction will end, since those who have paid a high rates for land, will keep prices high. The differences in CCR, OCR resale home prices was also similar increasing from 90.1 in 2014 to 94.1{71b2ba7deeac5035eb25195d08b84fd34c049012bd9cc107195fdd9c9fdb194c} in 2015 according to experts. Many of the OCR projects are likely to be completed in the next few years, so the gap is likely to further increase.

0 replies

Leave a Reply

Want to join the discussion?
Feel free to contribute!

Leave a Reply

Your email address will not be published.