Being centrally located, prime non-landed homes in Districts 9, 10 and 11 are highly sought after by both local and foreign investors, given the area's close proximity to Orchard Road, prominent embassies and the Central Business District.
These homes are generally considered as the topmost segment in terms of prestige, price and place.
Over the recent years, demand for such homes saw an increase in the proportion of foreign homebuyers.
In some developments, one out of every two units were bought by a non-Singapore resident.
The Additional Buyer's Stamp Duty, which was introduced last December, has affected the demand from foreign homebuyers as they are now required to pay an additional 10 per cent on the purchase price or market value of the property in addition to the existing buyer's stamp duty.
With an expected fall in foreign demand, some had predicted that prices of prime non-landed homes would fall.
The URA Private Residential Price Index for the Core Central Region (CCR) fell for the first time in Q1 2012 after experiencing eight consecutive quarters of price appreciation since Q3 2009.
Interestingly, recent statistics in Q2 2012 by the same index registered a rebound of 0.6 per cent quarter-on-quarter (q-o-q), compared with 0.5 per cent increase for Outside Central Region (OCR) and 0.4 per cent rise for Rest of Central Region (RCR).
What could be the reasons for the upturn of sale prices?