Buyers confidence bouncing back on reasonable prices
URA’s release of 107 units sold in January 2009 is the lowest recorded in the last two years, even lower than October 2008, when the financial crisis hit. This is not surprising, however, as many developers, especially those with larger-sized developments, chose not to launch their projects in January 2009, the festive season is traditionally coupled with lower sales.
“Interestingly enough,” notes PropNex CEO Mohamed Ismail, “close to 90% of all the transactions that took place were at below $1,000psf. This goes to show that there are still buyers for projects in the outer areas with properties, as long as the quantum value is reasonable, probably not exceeding the $800k mark.”
Despite the gloomy results in January, Ismail foresees a brighter February 2009. He points out that February saw the recent launches of Alexis and Caspian @ Lakeside, which have recorded an overwhelming take-up rate of over 750 units altogether. Alexis itself garnered a 100% take-up rate of its 293 units in a mere two days, while over 460 units were snapped up at Caspian over just two weeks.
“Certainly there is renewed confidence in the market for properties that are priced right,” observes Mr Ismail, “as many HDB upgraders and investors are able to pick up such units at lower quantums.
“Based on February’s transactions so far, I am confident that February 2009 will see the highest number of transactions since the 2007 boom, surpassing even the high mark of 897 in July 2008.”
