SLP stated that the prices of this 99-year leasehold cluster home project increased 20.1 % during the said period, while freehold cluster homes up by 10.2 %. The report for prices of freehold landed homes and 99-year leasehold cluster home gain valued by 15.1% and 18.7%.
“For example, Springhill project is a 99-year leasehold cluster project with an average transacted price of S$324 psf of strata area in the first half of year 2009. In the second half of year 2013, the median transacted price raised 83% to S$593 psf,” the report stated.
Executive director of research and consultancy at SLP, Mr Nicholas Mak stated, capital profits of all cluster homes were supported by new launches and transacted in a much higher prices. Moreover, the higher gains of 99-year leasehold cluster homes can also played a part to the lower base price, he added.
Singapore homes with land tenures of 99 to 105 years were classified under 99-year leasehold like Victoria Park Villas by Capitaland, while the projects with land tenures higher than 105 years were group by freehold category.