Private home prices and rents in Singapore rose in 2011 from the previous year despite cooling measures, said property consulting firm DTZ.
The measures included imposing seller's stamp duty and a reduction in loan-to-value limit.
This makes it the fastest growing segment among non-landed housing according to a basket of completed condominiums tracked by DTZ.
Fourth quarter flash estimates also showed HDB resale prices went up last year by 10.7%.
But prices of luxury condominiums only saw a 1.0% on-year growth in 2011.
DTZ said the global economic uncertainties dampened demand for luxury condominiums, dragging prices down by 0.7% in the fourth quarter.
"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," said Ms Chua Chor Hoon, head of Asia Pacific Research, DTZ.
Home prices in the prime freehold segment also took a hit, growing only 4.6% on-year, compared to 8.3% in 2010.
This contrasted with a sharp 12.8% on-year increase in resale prices of freehold landed homes in the prime districts. Leasehold landed homes in suburban areas also rose 12.4% last year.
Rents, meanwhile, were also higher in 2011, led by condominium rents which moved up by 8.9% due to demand from foreign professionals with higher housing allowances.
However, rents for luxury condominiums only grew 1.3% on-year.
From January to November, private home sales of 15,393 units in 2011 already outpaced the 15,288 units sold in the same period in 2010.
Volume is expected to fall in December and carry through in 2012 following the property cooling measures.
"Historically, significant price falls have been triggered by external events that affect the economy rather than cooling measures. The projected economic slowdown in 2012 will thus have a more significant impact on buyer sentiment and consequently on demand and prices," said DTZ's Ms Chua.
Overall, DTZ expects a take-up rate of 16,000 for 2012, slightly lower than the 16,292 units sold in 2010.
Source: Channel News Asia