Despite the pall of a recession, the private property market is already showing clear signs of recovery, based on URA’s release of unit prices sold in November. The number of units launched more than doubled from October’s 159 to 382. The number of units sold also jumped by over 70% to 192.
“We are definitely seeing some initial signs of market recovery,” says Adam Tan, Corporate Communications Manager at PropNex. “These figures are by no means the lowest for the year.”
Added PropNex CEO Mohamed Ismail: “Developers were not really releasing units in October as the economy’s outlook then was still highly uncertain. We saw more releases in November as the there are concrete plans to bolster the economy and the financial market is showing some signs of recovery.”
Although Mr Tan cautions that it is obvious that it is the lower-range private properties that are enjoying the recovery, with only one unit, at Orchard Scotts, barely breaking into the over-$2,000psf range. Together with 73 other units transacting between $1,000psf and $1,999psf, these mid-range units comprised 38.5% of all the private property units transacted.
Therefore, while the percentage of properties transacted below $1,000psf, at 61.5%, is lower than that of October’s 80%, it is evident that lower range private properties are still the more popular choice of prudent buyers.
He cites the example of the recently launched Rosewood Suites, which alone accounted for 42 units sold (or about 22% of November’s total sold). The median price was a steal at a mere $606psf. For HDB upgraders, such units are definitely a viable option.
“Moving ahead into 2009, and as we begin to experience further fall-out from the financial crisis,” forecasts Mr Tan, “we should see an even greater trend of developers releasing units at more realistic and reasonable prices, with more savvy buyers gravitating towards such investment bargains.”
“This is definitely a buyer’s market,” concludes Mohamed Ismail, “with plenty of opportunities for upgraders and investors. People should look at buying properties now before the demand pushes the prices back up.”
For enquiries, please contact:
Mohamed Ismail (CEO) 9487 1414
Adam Tan (Corporate Communications Manager) 9006 8726