It was a remarkable November as private home sales had increased month-on-month, with a total of 1,701 private homes transacted compared to 1,387 transactions (excluding Executive Condominiums) in October 2011, despite the weakening global economy. This was at an increase of 314 units of 22.6% M-on-M, with 48.5% of the total units sold saw a median psf of less than $1,200. (Almost half of the transactions were in the mass market segment)
“November was marked with several talked-about new project launches as developers tried to introduce latest developments before the festive and school holidays. It was still considered relatively strong demand, fuelled by the continued demand for mass market housings by foreign buyers and HDB upgraders. The main contributor to the high sales volume was the Bedok Residences due to the accessibility of the development to the nearby retail, MRT and bus interchange,” explained Mr Mohamed Ismail, CEO of PropNex Realty.
Like in the last 3 months, the top selling projects in October came from the sale of private apartments mainly in the Outside Central Region. Bedok Residences sold 477 units with median prices of $1,359psf, The Palette at Pasir Ris Grove sold 367 units at a median price of $895psf and Parc Vera at Hougang sold 83 units at $825psf. The three new developer top selling projects (excluding executive condominium) were certainly instrumental in the robust sales figure, accounting for 927 units, or about 54% of the total number of units (excluding EC) sold in November 2011.
Interestingly, November had the record private sales volume in the price range of $1,200 to $2,500psf, a total of 903 units were sold at 48.7% of the month’s sale transactions in this price bracket while another 2.8% were in the $2,500psf and above price range. The Scotts Tower sold 31 units at $3,263psf; Scotts Square sold 11 units at $4,334psf while The Marq was transacted at $6,841psf.
“It will be interesting to see the results of private property sales from December 2011 onwards, especially after the Additional Buyers Stamp Duty (ABSD) cooling measures take into effect. Private property transaction volume is projected to dive 40% in the core central region and a dip of 20% in the mass market segment and price correction may set in with 15 - 20% in the central core region and 10 -15% in the mass market segment.”
“Potential buyers (Singaporeans and foreigners) are now adopting a wait and see attitude, analysing the impact of this latest cooling measure and its correction before entering the market again. Some investors are already researching on commercial properties as alternatives. The first half of 2012 will see a stabilising period in the property market especially when the next two months are usually the quieter period of the year as homebuyers and investors will be preoccupied with the festive celebrations,” concluded Mr Mohamed Ismail, CEO of PropNex Realty.
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