This is the highest level in a decade. -ST

This is the highest level in a decade. -ST

Fri, Oct 26, 2007
Reuters

SINGAPORE, Oct 26 - Singapore private home prices rose 8.3 percent between July and September to their highest level in a decade, but fewer uncompleted residential units were sold versus the previous quarter, government data showed on Friday.

The Urban Redevelopment Authority said there was more supply in the pipeline to meet the overall rise in property demand, adding that there remained a number of residential projects with "a significant number" of unsold units.

The government agency's price index for private residential homes rose to 160.0 for the three months ended September, from 147.8 in the previous three-month period.

Private home prices also rose by 8.3 percent rise in the April-June period.

Private apartments in Singapore's core prime districts continued to lead the price gains although homes in the rest of the city-state also commanded higher prices.

A total of 3,367 uncompleted private units were sold by developers in the third quarter, down from 4,820 units in the April to June period.

Analysts said lower sales reflected investor unease following the subprime mortgage debt fallout in the U.S., as well as government moves to cool property prices that include hikes in redevelopment charges for real estate firms such as CapitaLand and City Developments .

Private home rents rose 11.4 percent in the July to September period, a slightly higher rate than the second quarter's 10.4 percent.

Office rents rose 14.8 percent in the third quarter, higher than the 11 percent increase recorded in the previous three months and bringing the total rise over the nine months since the start of the year to 40.7 percent.

The URA said it would make more sites available for development into office buildings next year to further boost supply.