The release of unit prices sold in October, as released by URA, shows us that we are now undeniably in a recession. The number of units launched plummeted month-on-month by almost 80% to just 159, the lowest on record for at least five quarters. The number of units sold also took a similar beating, with the number dropping, also month-on-month, by 70% to 112 units sold.
“We are now seeing the brunt of the economic crisis,” says Adam Tan, Corporate Communications Manager at PropNex. “With the threat of retrenchment and wage freezes, people are cutting back on their larger expenditures, including property.”
This trend was evident in the fact that about 80% of the private properties purchased cost below $1,000psf. Additionally, only four units in total transacted at over $2,000psf. This shows that while mid-range private properties was still relatively popular in September, the last month has seen more prudent buyers picking up lower-range private properties.
Such properties include Rosewood Suites in Woodlands, which launched last weekend at prices of below $600psf, down from an initially expected $650psf, and has sold over 40 units to date.
“This shows that developers themselves are being more realistic about the economic climate,” observes Mr Tan, “while buyers are also savvy enough to realize that there are opportune investments to be made.
“As we go into November and December, we should see a greater emphasis on the lower-range market with more development launches and savvy investors picking up good bargains,” he concludes.
For enquiries, please contact:
Mohamed Ismail (CEO) 9487 1414
Adam Tan (Corporate Communications Manager) 9006 8726