Prices in Bedok, West Coast, Thomson lagging behind market

From Straits Times – July 3, 2007

By Fiona Chan, Property Reporter

HOME seekers need not despair at the rapid rise in home prices shown by the latest estimates released yesterday.

They can turn to a number of residential areas and developments that are still lagging behind the market, with one area even falling in price, according to a study by Savills Singapore.

The property firm noted that in areas such as Bedok and the West Coast, average home prices have risen by less than 5 per cent over the last 12 months.

In contrast, home prices across Singapore have surged by about 20.6 per cent in the same period, boosted by a 7.9 per cent jump in the last three months alone.

For suburban areas as a whole, home prices have gone up by slightly more than 11 per cent over the last year, according to figures released by the Urban Redevelopment Authority yesterday.

But Savills data shows that in Bedok, home prices inched up only 4.9 per cent in the period. In the West Coast, the increase was about 4.8 per cent.

Slower increase

SAVILLS Singapore data shows that in Bedok, home prices inched up by only 4.9 per cent over the past year. In the West Coast, the increase was about 4.8 per cent. In Upper Thomson, prices actually fell by 4.1 per cent.
In contrast, home prices across Singapore have surged by about 20.6 per cent in the same period, boosted by a 7.9 per cent jump in the last three months alone.

And in Upper Thomson, prices in the general area actually fell by 4.1 per cent, said Savills.

‘There hasn’t been much attention paid to these areas because there haven’t been many new launches there,’ said Mr Ku Swee Yong, director of marketing and business development at Savills Singapore.

Also, in areas such as Paya Lebar, home sales and prices have been affected because of the Circle Line MRT construction that has been going on for a few years, he pointed out.

According to Savills, home prices in Paya Lebar have gone up by only about 7.5 per cent in the last year.

‘If HDB flats can go to the $700,000 type levels, units in these areas are also good buys,’ said Mr Ku.

In a market where values of popular condominiums rise by the week, the slow price climb of developments in these areas serves as a reminder that there is no need to panic, he added.

‘Many homebuyers don’t bother to do their homework,’ he said. ‘If they haven’t heard of a development, they just write it off even though it might be of good value.’

Many of these more affordable projects are fairly new. Some are even freehold but have suffered from a lack of publicity.

There are even developments in these and other areas that have fallen in price over the last 12 months. In the Upper Thomson area, Savills singled out Bullion Park in Lentor Loop, where average prices have slipped by 1 per cent from $520 per sq ft a year ago to $515 psf now.

The Linear in Upper Bukit Timah has also seen average prices dip by 0.7 per cent in the same period, said Savills. Prices were about $564 psf a year ago but are $560 psf now.”

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