July new private home sales (excluding ECs) rebounded 41.7% M-on-M to 1,943 units transacted. CEO of PropNex Realty, Mr Ismail cited, “The surge in primary home sales in July in response to the sensitive pricing of the 2 major launches namely Parc Centros and Parc Olympia. The 2Q12 URA results with private property price index increased by 0.4% compared to the 0.1% decrease in the first quarter also sent a strong signal that private homes’ prices are stabilizing and homebuyers feel that it is a good time to enter the market.”
“In addition, the attractive launches in July had drawn the crowd with prices ranging between $800 to $950psf.. Projects that sold well include Parc Centros, Parc Olympia, V on Shenton and River Isles. Parc Centros sold 492 units at a median price of $924 psf, Parc Olympia sold 204 units at a median price of $874psf, V on Shenton sold 144 units at a median price of $2,061psf and River Isles sold 86 units at a median price of $836 psf. The best sellers of Parc Centros and Parc Olympia were the main contributor of 696 units for July sales. As long as new projects are priced below $1,000psf, you will see a healthy demand.”
Mr Ismail pointed out that the strong response in July (excluding ECs) with out of 1,943 units sold, 1,509 units or 77% of the sales were still concluded in the Outside Central Region (OCR). The Rest of Central Region (RCR) saw an increase of 36% from 398 units sold in June 2012.
For the fourth consecutive month, the sales of private new homes in the core central region have surged and at its record high this year. Although investors had remained more cautious about the mid- and high-end markets, July saw a continuous returning investor confidence as the high-end property market showed signs of increase.
Going forward, barring any major economic crisis, the demand for new private homes will continue to remain positive as the conditions remain conducive for moderate growth.
Mr Ismail predicted that the following months’ sales figures to continue at about 1,500 to 2,000 units sold, except August and December, as developers may hold their new launches during the hungry ghost month and school holidays.
“With the presence of price resistance, prices for new projects will remain competitive as there will be added pressure for developers to price their projects reasonably as the increased supply will mean that prospective homebuyers can afford to be more selective. It was noted that private home prices are unlikely to dip further, as it was evident in the recent land bid prices that have remained strong and bullish, for example Tanah Merah’s residential site went at $676psf. Developers and homebuyers are definitely monitoring the market situation closely. On the whole, we expect residential property prices in Singapore to remain at a gradual growth of between 1 to 2% for 2012,” commented Mr Mohamed Ismail.
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