The month of August, the last immediately prior to the property cooling measures announced by MND on 30 August 2010, saw the highest percentage of private properties sold in the $1,000psf or more bracket.
Out of the 1,248 units sold, which was about 19.2% less than July’s 1,544 units, 88.2% saw a median per-square-foot (PSF) price of over $1,000.
“This is the highest percentage that we’ve seen for years,” reveals PropNex Corporate Communications Manager Mr Adam Tan. “While the dip in the volume of sales can be attributed to the typically quieter ‘ghost month’, the figures reveal that buying power and prices were escalating even further.”
July was the only other month for the last three years that saw over 80% of the private property units sold for at least $1,000psf, with a percentage of 86.8% only narrowly edged out by August’s 88.2%.
And like July, most of the units came from projects that saw a median sale price of at least $1,000psf: The Greenwich sold 207 units at $1,095psf; Viva Vista sold 139 units at $1,509psf; The Scala sold 74 units at $1,138psf and Centra Suites sold 62 units at $1,201psf.
“The only exception was Waterfront Gold,” says Mr Tan, “which sold 65 units at a median price of $990psf, which is already very close to hitting the $1,000psf mark.”
Together, these five projects accounted for 44% of the total sales.
“Consumers were obviously still willing to purchase properties that were reasonably priced,” comments Mr Tan, referring to the fact that only one of the top-selling projects breached the $1,500psf mark, and then only barely. “With a continually strengthening economy, the threshold for the PSF price that buyers are willing to pay is slightly higher, hence the increased activity within the $1,000–$1,500psf market.”
Normally, September sees slower sales than August, as the year begins to wind down. And the new property cooling measures introduced by MND on 30 August 2010, together with the resulting “wait-and-see” attitude for many buyers in the mass market segment, should see a further reduction in the number of units that would normally be sold.
“Despite many developers holding their prices, over 350 units have already been sold in the first half of September,” reveals Mr Tan, who notes that 250 came from NV Residences alone. “Furthermore, the mid- and upper-end markets will not be affected as much by the new measures as they have the financial power to pay the 30% cash-and-CPF down payment and settle for a 70% bank loan, two of the main cooling measures affecting private property purchases.
“Thus, it will be the mass market which will be the most affected, with HDB upgraders who are now unable to afford the 30% cash-and-CPF down payment being noticeably absent.”
Mr Tan expects about 700 to 850 private property units to be sold in September, with perhaps 500 to 800 units sold per month for the last quarter of 2010.
For enquiries, please contact:
Mohamed Ismail (CEO) 9487 1414
Adam Tan (Corporate Communications Manager) 9006 8726