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24-03-14, 11:30
http://www.straitstimes.com/archive/tuesday/premium/top-the-news/story/new-home-sales-surge-28-feb-20140318
New home sales surge 28% in Feb
But March figures likely to be subdued, say experts
Published on Mar 18, 2014
By Cheryl Ong
NEW home sales here kept picking up pace last month, as developers returned to the market with major new suburban launches.
But experts expect this month's figures to be subdued, and estimate that total sales for the first quarter will still be about 30 per cent lower than that for the fourth quarter last year.
They said February's upswing might reflect a stabilising market, but that a rebound in buying demand would still largely depend on how developers price units.
Home hunters bought 724 units last month, a 28 per cent surge from the 565 units sold in January, data from the Urban Redevelopment Authority showed yesterday. This excludes sales at executive condominiums.
The upswing was driven by two launches in Sengkang West, where 550 units went on sale. This helped the suburbs record 588 sales, leading the overall tally.
"With the market more attuned to the raft of cooling measures and financing curbs, as well as the festive lull behind, developers released two new mass-market projects in the suburbs," said Ms Chia Siew Chuin, director of research and advisory at Colliers International.
Frasers Centrepoint's 495-unit Rivertrees Residences moved 218 units at a median $1,111 per sq ft (psf), while UOL Group's 555-unit Riverbank @ Fernvale sold 211 units at a median $1,033 psf.
"Despite being (in) strong competition to each other, both adopted competitive pricing strategies," said Dr Chua Yang Liang, head of research and consultancy, South-east Asia, at property firm Jones Lang LaSalle. "The conditions today require developers to be more sensitive to the market, where value for money is key."
On the city fringes, 87 units were sold, while 49 units were moved in the city centre.
Experts said projects launched earlier felt the pressure from new launches, as developers slashed prices at older developments.
Property agency OrangeTee's research head Christine Li pointed to 10 per cent price cuts at MCL Land's Hallmark Residences in Bukit Timah, where 26 units were sold for a median price of $1,860 psf last month. "February's sales of Hallmark Residences could be a silver lining in the market: As long as developers can forgo some margins, but still be profitable, buyers do come back," she said.
Buyers picked up 23 units at EL Development's La Fiesta in Sengkang and 22 units at Fragrance Group and World Class Land's Urban Vista in Tanah Merah.
CBRE research head Desmond Sim said prices are "relatively stable" despite minor corrections of 1 per cent to 3 per cent at older projects. He said the discounts may have been for "less saleable units at older launches".
Still, Mr Sim said March sales figures are not likely to be strong. He expects sales this month to come in at between 400 and 500 units due to a dearth of new launches, and first-quarter sales to hit 1,800 units, 30 per cent below that sold in the preceding three months.
"The future new home sales market will very much be dependent on how developers want to move sales in a quieter market," said Ms Li.
But developers are also waiting to see who makes the first move, said Mr Sim, adding: "It is also a matter of who blinks first... Developers don't want to cannibalise each other too."
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New home sales surge 28% in Feb
But March figures likely to be subdued, say experts
Published on Mar 18, 2014
By Cheryl Ong
NEW home sales here kept picking up pace last month, as developers returned to the market with major new suburban launches.
But experts expect this month's figures to be subdued, and estimate that total sales for the first quarter will still be about 30 per cent lower than that for the fourth quarter last year.
They said February's upswing might reflect a stabilising market, but that a rebound in buying demand would still largely depend on how developers price units.
Home hunters bought 724 units last month, a 28 per cent surge from the 565 units sold in January, data from the Urban Redevelopment Authority showed yesterday. This excludes sales at executive condominiums.
The upswing was driven by two launches in Sengkang West, where 550 units went on sale. This helped the suburbs record 588 sales, leading the overall tally.
"With the market more attuned to the raft of cooling measures and financing curbs, as well as the festive lull behind, developers released two new mass-market projects in the suburbs," said Ms Chia Siew Chuin, director of research and advisory at Colliers International.
Frasers Centrepoint's 495-unit Rivertrees Residences moved 218 units at a median $1,111 per sq ft (psf), while UOL Group's 555-unit Riverbank @ Fernvale sold 211 units at a median $1,033 psf.
"Despite being (in) strong competition to each other, both adopted competitive pricing strategies," said Dr Chua Yang Liang, head of research and consultancy, South-east Asia, at property firm Jones Lang LaSalle. "The conditions today require developers to be more sensitive to the market, where value for money is key."
On the city fringes, 87 units were sold, while 49 units were moved in the city centre.
Experts said projects launched earlier felt the pressure from new launches, as developers slashed prices at older developments.
Property agency OrangeTee's research head Christine Li pointed to 10 per cent price cuts at MCL Land's Hallmark Residences in Bukit Timah, where 26 units were sold for a median price of $1,860 psf last month. "February's sales of Hallmark Residences could be a silver lining in the market: As long as developers can forgo some margins, but still be profitable, buyers do come back," she said.
Buyers picked up 23 units at EL Development's La Fiesta in Sengkang and 22 units at Fragrance Group and World Class Land's Urban Vista in Tanah Merah.
CBRE research head Desmond Sim said prices are "relatively stable" despite minor corrections of 1 per cent to 3 per cent at older projects. He said the discounts may have been for "less saleable units at older launches".
Still, Mr Sim said March sales figures are not likely to be strong. He expects sales this month to come in at between 400 and 500 units due to a dearth of new launches, and first-quarter sales to hit 1,800 units, 30 per cent below that sold in the preceding three months.
"The future new home sales market will very much be dependent on how developers want to move sales in a quieter market," said Ms Li.
But developers are also waiting to see who makes the first move, said Mr Sim, adding: "It is also a matter of who blinks first... Developers don't want to cannibalise each other too."
[email protected]