News: Price gain highest in semi-detached home: Report
The residential property market recorded an overall price expansion of 78 percent from Q1 2000 to Q3 last year, based on a study by Oriental Realty with its Hong Kong-based partner, Zeppelin Real Estate Analysis Ltd.
The study revealed that across the four main residential categories, semi-detached homes recorded the highest price gain of 103 percent, while terraced, detached and high-rise homes posted 91 percent, 79 percent and 50 percent, respectively.
Semi-detached property recorded a higher price gain compared to detached property, which has been fronting the list for some time.
In terms of volatility, high-rise residential property tends to have the lowest volatility as far as price performance is concerned. On the other hand, both semi-detached and detached properties have similarly higher volatilities.
In Q3 2011, prices across all four residential property types exceeded the high standard deviation levels, although in varying degrees. This implies that mean prices are on the high side.
As higher returns usually come with higher risks, risk adverse investors could opt for high-rise homes. But those who are ‘middle of the ground' in risk adversity may choose terraced house properties.
Moreover, a semi-detached home may prove a better selection for investors wishing for the best possible price gain, compared to other types.
Terraced and semi-detached types also appear to show comparatively better price performances over the period.
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