According to DTZ Research, prices of luxury and prime freehold non-landed homes in Q12010 were still below the previous peak levels while landed home prices have surpassed the peak levels achieved in 2008.

In the prime districts of 9, 10 and 11, average freehold resale landed prices increased by 5.7% to reach a new high of $1,529 psf. This represented a 28.2% rebound from the bottom one year ago. The increase is higher than the 4.2% rise in luxury non-landed home prices which averaged $2,500 psf. Prime freehold non-landed homes rose 3.7% to $1,456 psf.

Prices of luxury and prime freehold non-landed homes were still 10.7% and 1.9% respectively below the previous peak levels.

Prices of leasehold homes outside the prime districts saw the least increase in prices as they have surpassed the previous peak level and there is more resistance to the higher prices in the mass market. Non-landed resale home prices rose 2.1% to $623 psf in Q1 2010, surpassing the $615 psf achieved in Q4 2007.

The leasing market was stable with rental values across all segments remaining unchanged for the third consecutive quarter. The average rental value of non-landed homes in prime districts was $3.32 psf per month, which is still 32.8% below the high in Q2 2008.

Despite the compressed yields, government measures and land sites released in the quarter, buyers continued to be out in force. According to Margaret Thean, Executive Director (Residential), DTZ South-east Asia," Many investors are buying in anticipation of future rise in rents and prices as the economy is improving and the long-term fundamentals of Singapore are strong."

Primary sales volume in January and February reached 2,676 units, which is already more than the combined total of Q1 2009. The total take-up for Q1 2010 is likely to be in the range of 3,600 to 4,000 units.

Chua Chor Hoon, Head of DTZ South-east Asia Research, commented, "If the buying fever and price increases continue unabated or intensifies, more government measures are likely to be introduced. While the outlook is positive, prices are expected to increase more moderately by 5% to 15% in 2010."