HUIXIAN

PRICES of private homes rose by 4.6 per cent in the first quarter of 2007 - the biggest jump in seven years.

And the price growth is now spread more widely, with homes outside the prime districts also enjoying the appreciation, latest figures from the Urban Redevelopment Authority showed.

This is the third straight year of growth for home prices, bringing the figure to just 3 per cent shy of the last peak in 2000.


While luxury condominiums in areas like Orchard Road and Sentosa saw the biggest jump of 5.6 per cent, prices of homes in other areas also grew at a faster clip.

In city-fringe areas, prices of non-landed homes went up 2.9 per cent, while in suburban districts they rose 2.6 per cent.

Prices of HDB resale flats also went up by 1.2 per cent - the most in two-and-a-half years.

Some analysts believe prices of all private homes will grow an estimated 15-18 per cent for the whole year. This is because buyers are more confident of the Government's prediction that the population may grow to 6.5 million, leading to more demand.

However, there are experts who believe that the price growth will be confined just to the prime areas.

This is because while homes outside these areas are doing better, it is mainly due to a few popular projects rather than a widespread spillover from the luxury segment.