Monday, March 12, 2012

IRs having limited impact on home prices: report

The two Integrated Resorts (IRs) in Singapore have had limited impact on private home prices in the area, according to the latest report by DTZ Research.

The consultancy said that following the opening of Resorts World Sentosa and Marina Bay Sands (pictured) – home prices in Sentosa and Marina Bay increased at a slower rate of 1.5 percent and 3.7 percent from Q2 2010 to end-2011 respectively, while prices in the Core Central Region (CCR) climbed eight percent over the same period.

However, the lead-up to the opening of the IRs was a different story, said DTZ. It noted that the most significant impact for private home prices in the vicinity was within the one year after the award of the sites in 2006 and the one and a half years before the IRs started operations.

Prices of private non-landed homes in the Sentosa and Marina Bay area jumped 41.7 percent and 30.6 percent respectively in 2007, higher than the 25.7 percent increase in CCR prices. Meanwhile, in the one and a half years leading to the opening of the IRs, capital appreciation of non-landed homes in Sentosa and Marina Bay soared 38.5 percent and 65.3 percent respectively. This was probably due to the excitement of having an IR in the vicinity as well as the economic recovery during the time, said DTZ.

“The greater volatility in the capital values of non-landed private homes in Marina Bay and Sentosa could have been due to higher investor interest which includes some speculative element.”

DTZ expects future home prices and rents in Sentosa Cove and the Marina Bay area to move more in line with the rest of the CCR.

View the original article here

Source From Property Guru

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