Prices for homes in suburban areas still rising - Singapore

Prices for luxury and high end homes in the central areas may be showing signs of slowing down, but this is not so for homes found outside the city areas. According to figures from the Urban Redevelopment Authority, growth in the prices of uncompleted projects in the central areas slid from 7.8% to 7.6% in the last quarter of 2007. However, price increases were seen for city fringe units, rising from 7.6% to 8.3%. And for uncompleted apartments in suburban areas, there was a rise from 9.1% to 9.2%.

Dr Chua Yang Liang, head of research, South-east Asia, at Jone Lang Lasalle, said home prices in the suburbs would keep growing by 24% to 26% this year. THis would be supported by home owners looking for new homes after being disloged by collective sales.

Last year, 14811 new homes were sold.

Mr Li Hiaw Ho, exercutive director of research at CB Richard Ellis, meanwhile, expects price rises and sales volumen to moderate this year.

"Luxury prices are likely to stabilise at current levels, while mid-tier and mass market prices may have the potential to rise by 10% - 15%," he said.

remarks- extract from The strait Times