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Buyers return in May as transactions rebound
Singapore Property Market News and Analysis


Latest Property Real Estate News - Published on 17/06/2013

Buyers return in the month of May as the private residential market rebounded. Transactions in May reversed the 50% plunge in the previous month to register a healthy 1,455 units sold excluding ECs (or a 5.8% increase comparing M-O-M). ECs also performed well with 457 units sold—the highest of 2013 so far.

“The steady transaction level could be due to robust demand from genuine first-time homebuyers as well as competitive pricing put out by developers to entice potential homebuyers,” continued PropNex CEO Mr Mohd Ismail, "homebuyers are interested to look at projects that have good location attributes, such as close proximity to transportation modes like MRT stations and/or good schools. Such well-located projects are likely to see healthy demand, provided they are priced reasonably by developers."

“Furthermore, more than 40% of transactions in May were in the Rest of Central Region (RCR) as the plethora of new launches such as Corals at Keppel Bay and KAP Residences attracted many upgraders and investors alike”.

In May, the 2 best-selling projects were in the Outside Central Region (OCR) — The top selling project was Twin Fountains (EC), which sold 316 units at a median price of $741psf. Stratum also performed well with 269 units sold at a median price of $925psf. Hot on the heels are several projects in the RCR — Corals at Keppel Bay sold 132 units at $2,150psf, KAP Residences sold 105 units at $1,839psf and Bartley Ridge moved 100 units at $1,257psf.

Sales volume and prices to maintain at current level

“Secondary sales are expected to continue to underperform relative to primary sales as individual sellers in the secondary market are unable to entice buyers with discounts and incentives like developers in the primary market,” noted Mr Mohd Ismail.

“However, we also expect developers’ discounts to continue—as they have paid higher land bid prices for the upcoming launches and will need such incentives to spur demand for their units. They are also likely to continue to monitor buyers’ interest before setting the right price to introduce their projects to the market”.

“Moving forward, we expect sales volume to maintain at its current level. Housing demand is likely to remain healthy as key support factors such as the availability of cheap credit and a low unemployment rate will continue to fuel housing demand. However, a repetition of 2012’s strong sales rally is highly unlikely due to the January 2013 cooling measures”.

“In addition, homebuyers will be expecting developers to price their projects reasonably due to the cooling measures and the projected increase in oncoming supply. As such, they are expected to be choosier as they seek to find the best value-for-money investment. Also, developers are likely to be cautious in their pricing strategy to avoid hitting buyers’ price resistance level”.

The full year forecast for developer sales will range between 17,000 and 19,000 units sold, with the higher end of the figure being reached if GDP growth remains strong and foreigner demand of properties is sustained.

END

For media enquiries, please contact: Carolyn Goh
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
www.PropNex.com



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