iwant2buyproperty
18-11-13, 09:45
Developers' sales of private homes are poised to rebound this month - buoyed by brisk sales of Duo Residences in the Bugis area, for example - after slipping 19 per cent in October to 1,009 units from 1,246 units in September. October's figure was about half of the 1,949 units a year earlier.
As at 3pm yesterday, 468 units had been sold out of 540 units released at the 660-unit Duo Residences, at an average price of about $2,000 per square foot (psf), its developer, M+S, said in a statement. Word on the street was that sales had touched 565 units by 7pm.
Earlier this week, Singapore Land moved 150 units at Alex Residences. Later this month, GuocoLand is expected to release Clermont Residence in Tanjong Pagar, at a price said to be above $3,000 psf. All three projects are 99-year leasehold.
The Inflora, in the Upper Changi vicinity, was last month's top-selling project in the primary (that is, developer sales) market, with 388 units sold at a median price of $952 psf. Chip Eng Seng moved 96 units at Nine Residences in Yishun at a median price of $1,107 psf, while near Potong Pasir MRT Station, City Developments found buyers for 39 units at The Venue Residences at a $1,457 psf median price.
Amid the tighter financing regime, the winning attributes of top-selling projects these days are a good location (preferably near MRT stations) and attractive pricing in terms of both per square foot and lump-sum quantum.
Last month's 19 per cent decline in developer sales took place amid a pullback in units launched. Developers released 1,124 units in October, down 38 per cent from 1,806 units the previous month. Notably, they released fewer than 100 units for most of the projects launched last month.
A comparison between developers' sales data for October and September revealed the incidence of returned units. Figures show that 16 units at The Glades in Tanah Merah, eight units at Sky Vue in Bishan and three units at Thomson Three were returned. All three projects were launched in September. This may reflect "teething problems" of the Total Debt Servicing Ratio (TDSR) framework, according to an analyst, as some buyers could have taken the plunge without securing loans first.
Yesterday's data, based on developers' monthly submissions of sales stats to the Urban Redevelopment Authority, showed that the lowest transacted psf price for a non-landed private home last month was $599 psf, for a unit at A Treasure Trove condo in Punggol Central, while the priciest unit transacted, at $3,226 psf, was at Eden Residences Capitol.
Developers sold 99 executive condominium (EC) units last month, down sharply from 412 units in September and 676 units in October 2012. No new EC units were launched last month.
Including ECs - a public-private housing hybrid - developers moved 1,108 private homes last month, a big drop from 1,658 units in September and 2,625 units in October last year.
In the first 10 months of this year, 13,389 private homes and 2,996 ECs were transacted in the primary market, down from 19,793 and 3,493 units, respectively in the year-ago period.
Post-TDSR, developers have sold 3,439 private homes from July to October. Assuming they find buyers for 2,500 units in November-December, their total sales for H2 2013 would be close to 6,000 units. Assuming this performance is repeated next year, developers' private homes sales for full-year 2014 would be around 12,000 units, according to a seasoned market watcher.
"The feverish exuberant buying has diminished because of the TDSR and lower loan-to-value limits," observed Michael Ng, group general manager of Singapore Land and its parent, United Industrial Corporation. "Now we're seeing more level-headed, rational buying decisions being made, whether for owner occupation or investment."
He added that in the high-end segment, the cash requirement for investors was "very daunting".
Giving his take, another experienced industry observer said: "What we're seeing at this point is that for projects with strong attributes, if a developer adjusts prices to a more attractive level, it can draw buyers.
"The problem is that if every developer were to start doing this at the same time, we may see a flurry of launches and it could look like there's a price war going on. If buyers see this, they may hold back in the hope of even lower prices."
At Duo Residences, prices start from $902,000 for a studio apartment, slightly over $1 million for a one-bedroom apartment and $1.535 million for a two-bedder. Sales at the project began on Wednesday, M+S said.
Singaporeans picked up 78 per cent of the 468 units sold as at 3pm yesterday. Malaysians accounted for 16 per cent. Prices will be raised progressively. The 49-storey project is part of a 99-year-leasehold integrated project. Its developer, M+S, is a tie-up between Khazanah Nasional and Temasek Holdings.
Source: Business Times –16 November 2013
As at 3pm yesterday, 468 units had been sold out of 540 units released at the 660-unit Duo Residences, at an average price of about $2,000 per square foot (psf), its developer, M+S, said in a statement. Word on the street was that sales had touched 565 units by 7pm.
Earlier this week, Singapore Land moved 150 units at Alex Residences. Later this month, GuocoLand is expected to release Clermont Residence in Tanjong Pagar, at a price said to be above $3,000 psf. All three projects are 99-year leasehold.
The Inflora, in the Upper Changi vicinity, was last month's top-selling project in the primary (that is, developer sales) market, with 388 units sold at a median price of $952 psf. Chip Eng Seng moved 96 units at Nine Residences in Yishun at a median price of $1,107 psf, while near Potong Pasir MRT Station, City Developments found buyers for 39 units at The Venue Residences at a $1,457 psf median price.
Amid the tighter financing regime, the winning attributes of top-selling projects these days are a good location (preferably near MRT stations) and attractive pricing in terms of both per square foot and lump-sum quantum.
Last month's 19 per cent decline in developer sales took place amid a pullback in units launched. Developers released 1,124 units in October, down 38 per cent from 1,806 units the previous month. Notably, they released fewer than 100 units for most of the projects launched last month.
A comparison between developers' sales data for October and September revealed the incidence of returned units. Figures show that 16 units at The Glades in Tanah Merah, eight units at Sky Vue in Bishan and three units at Thomson Three were returned. All three projects were launched in September. This may reflect "teething problems" of the Total Debt Servicing Ratio (TDSR) framework, according to an analyst, as some buyers could have taken the plunge without securing loans first.
Yesterday's data, based on developers' monthly submissions of sales stats to the Urban Redevelopment Authority, showed that the lowest transacted psf price for a non-landed private home last month was $599 psf, for a unit at A Treasure Trove condo in Punggol Central, while the priciest unit transacted, at $3,226 psf, was at Eden Residences Capitol.
Developers sold 99 executive condominium (EC) units last month, down sharply from 412 units in September and 676 units in October 2012. No new EC units were launched last month.
Including ECs - a public-private housing hybrid - developers moved 1,108 private homes last month, a big drop from 1,658 units in September and 2,625 units in October last year.
In the first 10 months of this year, 13,389 private homes and 2,996 ECs were transacted in the primary market, down from 19,793 and 3,493 units, respectively in the year-ago period.
Post-TDSR, developers have sold 3,439 private homes from July to October. Assuming they find buyers for 2,500 units in November-December, their total sales for H2 2013 would be close to 6,000 units. Assuming this performance is repeated next year, developers' private homes sales for full-year 2014 would be around 12,000 units, according to a seasoned market watcher.
"The feverish exuberant buying has diminished because of the TDSR and lower loan-to-value limits," observed Michael Ng, group general manager of Singapore Land and its parent, United Industrial Corporation. "Now we're seeing more level-headed, rational buying decisions being made, whether for owner occupation or investment."
He added that in the high-end segment, the cash requirement for investors was "very daunting".
Giving his take, another experienced industry observer said: "What we're seeing at this point is that for projects with strong attributes, if a developer adjusts prices to a more attractive level, it can draw buyers.
"The problem is that if every developer were to start doing this at the same time, we may see a flurry of launches and it could look like there's a price war going on. If buyers see this, they may hold back in the hope of even lower prices."
At Duo Residences, prices start from $902,000 for a studio apartment, slightly over $1 million for a one-bedroom apartment and $1.535 million for a two-bedder. Sales at the project began on Wednesday, M+S said.
Singaporeans picked up 78 per cent of the 468 units sold as at 3pm yesterday. Malaysians accounted for 16 per cent. Prices will be raised progressively. The 49-storey project is part of a 99-year-leasehold integrated project. Its developer, M+S, is a tie-up between Khazanah Nasional and Temasek Holdings.
Source: Business Times –16 November 2013