Prices of Resale Flats Rise 0.6%
The demand for homes in the suburbs and city fringe localities is on the rise. This helps the prices of resale flats rise 0.6% by January 2013. Singapore Real Estate Exchange says prices of flats increased to an average of $1,256 per square feet in the city fringe areas. Resale flats in suburban areas increased up to 1.1%, which means an average of $997 per square feet was increased. However, the prices of flats in the city center were reduced by 2.9%, which mean the average cost is $1,878 per square feet.
The volume of sales was on the rise. The figures show that around 920 units were sold on the resale market in the last month, which is 16.7% more than the units sold in December, where only 788 units were sold. It is three times more than the number of units sold in January 2012. Analysts said with increased new home prices, bargain buyers get attracted to resale market, looking for better value.
Singapore Real Estate Exchange report also shows that the rents for private flats increased by 1.2 per cent from December 2012. The rents of flats in city fringe areas are on an average $4.11 per square feet. The rent of flats in the city center also increased by 0.9%, which means the average rent, is $4.68 per square feet. Experts believe competition among landlords for renters will increase this year, as the supply of properties is more. They predict rents for older, yet bigger properties would reduce by 1 to 3% by the end of the year. On the other hand, newer, but smaller units will fetch higher rental rates that would increase the rent per square feet for the overall rental market. This could increase the overall rent by 2% by the end of 2013.