Press Release
March 16, 2009
Private property rebounds strongly
The release of two new projects helped the private property scene here rebound strongly with an astounding 1,323 units sold in February 2009, according to URA’s release today. This figure, the highest since August 2007, is even more amazing considering the fact that February is the shortest month of the year.
“The main reason for this,” explains PropNex CEO Mohamed Ismail, “is the fact that developers have slashed their prices for units, accepting minimal profits. This makes it highly irresistible for serious buyers, be it investors or HDB upgraders.”
On that note, Mr Ismail feels that over 50% of the sales were due to HDB upgraders, as 70% of the units sold were below the $1,000psf mark.
In fact, the high number of units sold at the $1,000psf mark and above was due to 293 units at Alexis, which offered smaller units. Had the units been larger, Mr Ismail notes, the quantums would have been higher and thus not so affordable.
His rationale for this is based on the fact that not a single transaction in February crossed the $2,000psf mark, a clear indication that the high-end property market was still stagnant.
Mr Ismail expects this trend of recovery to continue in the months to follow, as more developers gain confidence from February’s healthy showing and release more units. “However,” he cautions, “they must still remain sensitive to the affordability of the units.” Read up more on what to do before you embark in any property purchase.
Banks are also expected to help in this rebound as most loans would be for lower amounts. Generally, reveals Mr Ismail, banks would be more stringent on granting loans for properties over $3million in value.
As February saw the release and sale of over 800 units by just two developers, Mr Ismail does not expect March to have such a high volume of sales.
“However, I think we can still expect around 800 unit sales next month,” he concludes.
