Based on past figures, August is typically a quieter month for the property market as developers tend to hold back on new project launches in the Hungry Ghost month. Recording the lowest number of new units being launched in August with only 1,118 units in the market, the August URA figures also showed an expected dip with a total of 1,539 units sold. This was the lowest number of new private residential transactions (including Executive Condominium) in 2012, at a drop of 25.5% M-on-M, with 62.0% of the total units sold in the Outside Central Region.
What remained on track was the fact that 18,295 new private homes (incl. ECs) were already transacted in the first eight months of the year. We are confident that this will be able to smash 2011’s record of 19,285 new private homes sold.
A detailed analysis of the August results showed that once again, Parc Olympia was one of the top 4 project developments that sold very well last month, with 110 units sold at $870psf. Other projects that sold well include One Dusun Residences with 153 units sold at a median price of $1,532 psf; Bartley Residences sold 70 units at a median price at $1,236psf; while V on Shenton sold 65 units at a median price of $2,019psf.
Mr Ismail pointed out that interestingly that, “Homebuyers are now considering homes in RCR 368 units sold in this region, almost doubled 181 units sold in the same region last month. It was an identified area with good potential growth. Going forward, barring any major economic crisis, the demand for new private homes will continue to remain healthy as the conditions such as low mortgage and unemployment rates remain conducive for moderate growth. In addition, the slew of cooling measures that weeded out unwanted competition from foreigners, short-term investors and speculators may also have prompted many genuine buyers to acquire homes,” expounded PropNex CEO Mr Mohd Ismail.
Mr Ismail predicts that the following months’ sales figures to continue at about 1,600 to 2,000 units sold, except in December, as developers may hold their new launches during school holidays. However, he expects new private home sales figures to come in at between 20,000 to 23,000 units in for the entire 2012.
“With the lingering 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 of new private homes will mean that prospective homebuyers can afford to be more selective. It was noted that private home prices are unlikely to dip further this year, unless Europe’s economy is heading towards a recession,” commented Mr Mohamed Ismail.
“If projects such as Eco and Riversails are able to hit the launch pad in September, new private home sales is likely to rebound in the private property market.
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