The month of August saw a steady sale of new developer projects in the private residential market as most are sold at less than $1,200psf, mainly in the Outside Central Regions (OCR).
Based on past figures, August is typically a quieter month for the property market as developers hold back on new project launches in the Hungry Ghost month. However, the August URA figures reported a total of 1,348 units sold, almost close to the number of units sold in July 2011 at 1,386 units, (excluding executive condominium units) at a marginal dip of 2% M-on-M, with 75.6% of the total units sold saw a median psf of less than $1,200.
Like the month of July 2011, the top selling projects in August came from the sale of private apartments mainly in the OCR. EuHabitat, located at Jalan Eunos sold 439 units with median prices of $1,015psf, Boathouse Residences in Upper Serangoon sold 202 units at a median price of $898psf, The Luxurie in Sengkang sold 151 units at $1,053psf while Executive condominium - Blossom Residences at Bukit Panjang sold 176 units at $706psf. The three new developer top selling projects (excluding executive condominium) in OCR were certainly instrumental in the robust sales figure, accounting for 792 units, or about 58% of the total number of units sold in August 2011.
“PropNex Realty achieved a slight increase in the month-on-month private resale volume of transactions in August, largely contributed by the sale of completed mass-market condominiums. Executive condominiums and the new development launches in the OCR had kept the private property market buoyant as buying is supported by HDB upgraders purchasing their first private home, typically for their own occupation. It was the affordable price of the four best-selling projects in August that facilitated such a relatively healthy volume of transactions too. However, sales of high-end homes costing above $5 million have been at a slower pace,” commented Mr Mohamed Ismail, CEO of PropNex Realty.
Mr Ismail projects the September’s sales to rebound in the private property market, mostly contributed by the numerous new property launches expected in the next few months. In view of the economic gloom, developers are pricing the new launches more sensitively, while the demand remains strong as most buyers prefer new projects as they do not need to move into a new home straightaway. This lets them take a mortgage slightly later, given the progressive payment schedule, now that housing loans are at its lowest. Developer sales for September may surpass the August figures - with sales at Sim Lian's A Treasure Trove, released last week, already said to have surpassed the 500-unit mark.
The rebound that we are predicting is largely due to the low home loan rates, the return of home buyers after the June school holidays and possibly the increase in income ceiling for buyers of executive condominium. Factoring in the worsening economic situation, home buyers and investors may be taking a more cautious approach and signs of lower land bid prices may indicate that prices will be adjusting to the market demands in the private residential market in the coming months.
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Corporate Communications and Marketing Manager
P & N Holdings Pte Ltd (holding company of PropNex Realty)
480 Lorong 6 Toa Payoh #10-01 HDB Hub East Wing Singapore 310480
DID : (65) 6829 6968 / 98287834 | Main : (65) 6820 8000 | Fax : (65) 6829 6600