Monday, March 29, 2010

Private resale home prices erupt: highest ever

Private home prices have never been higher before - at least according to Savills Singapore. This seems to be happening just when measured measures were supposed to be working. Perhaps this will give even more for the government to think about.

According to Savills Singapore, a report said that average prices for non-landed private resale homes have gone beyond the 2007 peak by 6%, and surpassed by it by 15.6% for landed homes - in short we are staring at some of the highest levels ever seen in Singapore's history:

Average resale mass market prices: $662 psf (Jan,Feb 2010), up from $555 psf (2007)*
Average resale mid market prices: $886 psf (Jan,Feb 2010), up from $740 psf (2007)*
Average resale high end market prices: $1,425 psf (Jan,Feb 2010), up from $1,254 psf (2007)*

Notably however, volume of sales are still shy of 2007 numbers.

While we aren't sure if it is right to compare a two month average versus an annual average considering there are seasonal adjustments etc, we are pretty sure that this news will certainly ruffle lots of feathers since measures are supposed to be kicking in and things are supposed to be calming down.

The general elections will eventually come around, and the last thing any government wants to do is to annoy young impressionable voters with wild home prices. While some might argue that young couples unhappy with high home prices only form a minority of voters (the rest are happy to just watch their property values grow), it just takes these few 'swing votes' to make an impact.

As posted in h88.com.sg by Francis

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