Luxury condos in district 9, 10, 11 hammered in market downturn

They’re the only segment with prices below the peak in 2007.

DTZ said:

Luxury condominiums in the prime districts of 9, 10 and 11 fared the worst in 2011 and is the only segment with prices below the peak in 2007. Resale prices of luxury condominiums saw a modest YOY growth of only 1.0% in 2011.

Prices stalled in Q3 2011 and fell marginally by 0.7% in Q4 2011 as demand for resale luxury condominiums was affected by global economic uncertainties in 2011 which led to more selective buying.

Ms Chua Chor Hoon, Head of Asia Pacific Research, said: “As a larger proportion of purchases in the luxury segment are by foreigners who are now subject to the Additional Buyer’s Stamp Duty (ABSD) of 10%, this segment is expected to see a sharper fall in prices than other segments in 2012. Foreigners may instead buy a smaller unit so as to keep to their original budget if there is no absorption of the ABSD or look to buy in other countries instead.”