Average prices S$2,269 per square foot in the first three months of the year, up marginally by 0.5% quarter on quarter from S$2,258 per square foot in the last three months of 2010.
The average price of super luxury property also increased, up by 1% quarter on quarter to S$3,417 per square foot in the first quarter, from S$3,383 per square foot in the previous quarter.
Analysts pointed out that the price gap between the peak of the market in the last quarter of 2007 peak and current prices is gradually narrowing, with high end and super luxury residential prices now only 5.9% and 7.2% under their peak levels.
Savills is predicting that there will be a sustained interest in luxury homes in the longer term, as the land supply within this market sector is limited.
‘Well located luxury homes with good product offerings may continue to command premium prices. More overseas investors may also divert their investments here, as the strong Singapore dollar can help them hedge against any fluctuations in the global exchange rate,’ the latest report says.
In the rental market, the average monthly rent of luxury non landed residential properties is also rising. Rents have increased for five consecutive quarters to S$5.43 per square foot in the first three months of 2011. However, the growth slowed to just 0.7% quarter on quarter.
Located in prime districts, most projects completed in the first quarter will exert some short term pressure on prime rents going forward. But rents are anticipated to stay firm for super luxury homes and good class bungalows as the supply is limited.
‘Although rents for some high end private homes may face short term pressure from the new completions, the limited supply of land for this market segment in the long term could still see rents of good class bungalows and super luxury homes holding firm in the next few quarters,’ Savills Singapore said.
