Residential land prices down 5.8% in 2015
The price of land sites in Singapore for prime residential and office projects did not change in the second half of 2015, according to Knight Frank’s latest Prime Asia Development Land Index.
But for the entire year, residential land prices in the city-state fell by 5.8 percent, while office prices grew by six percent.
“The soft demand in the housing and office rental markets as a result of both domestic and external economic challenges coincided with strong supply pipelines to weaken the demand for land,” said Knight Frank.
“Firms in Singapore continued to face challenges from economic restructuring in the face of weak demand, while home buyers’ confidence was hurt by the prospect of rising interest rates and volatility in financial markets.” The residential cooling measures were also a factor in curbing demand, added the consultancy.
The most recent prime development land transaction in Singapore was the sale of a site at Alexandra View to Tang Skyline for $376.9 million in November, which is expected to yield about 400 homes.
Meanwhile, prices of residential sites in Asia rose by three percent in H2 2015, up from 1.2 percent in the previous six months. Tokyo and Phnom Penh led the region, with prices shooting up by 14.8 percent and 26.2 percent respectively for the year.
Knight Frank’s index tracks land prices in 13 major cities across Asia.
Picture Source: A land parcel in Singapore. (Photo: Nikki De Guzman) – Knight Frank
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