In URA’s release of unit prices sold in the month of September, we saw an almost 300% increase in the number of units launched and a slight increase of 17.5% in the number of units, as compared to August 2008.
It appears that the property market is recovering, although the figures of 767 launched units and 376 sold units for September are still only 58% and 42% of the numbers for July 2008, respectively.
“One possible reason for the increased sales,” surmises CEO PropNex Mohd Ismail, “could be the recent financial crisis. Stocks, shares, equities and other such financial investments are now largely avoided. People here are looking to a ‘brick-and-mortar’ investment, and choose therefore to plant their funds in property.”
This investment trend was reflected in the fact that 59.6% of the units purchased had a median price of over $1,000psf, the highest percentage for the whole of 2008.
“However,” noted Mohd Ismail, “while nine units in August 2008 transacted for over $3,000psf, and 22 for over $2,000psf, only one unit sold for over $3,000psf and 15 for over $2,000psf in September. This shows that the buyers are looking at the mid-range private properties.”
He also noted that the median price at Nassim Park Residences dipped from $3,349psf in August to $3,197 in September, an indication of the weakened market for high-end properties.
As we approach the year’s end, Ismail does not expect to see many developers drastically dropping prices in the next few months, as Singapore’s economy is expected to weather the storm and property here remains a viable and lucrative investment.