Strong capital appreciation
Research has revealed that growth in the capital values of Strata homes have outpaced that of private landed properties during the last two market boom periods. Some strata-titled properties have surged by as much as 55% from their original prices over a period of just 4 years (2004-2008), an appreciation rate that overtook landed property classes such as terraced houses.
Strata home prices have been buoyant as demand has been relatively strong whilst supply has been limited. What is more, going forward, supply may be further restricted, mainly due to a recent change in URA development guidelines for strata titled landed housing that call for greater allocation of communal open space, thus affecting the profitability of developers.