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Published March 13, 2006
Condo deals in prime districts hit 6-year high
Foreign buyers now include Europeans, Americans, Australians, Mainland Chinese and Indians: study
By KALPANA RASHIWALA
(SINGAPORE) Total transactions of private apartments and condos in the traditional prime districts 9, 10 and 11 soared to a six-year high of 3,774 units last year, reflecting a 74 per cent jump from 2004, shows the latest caveats analysis by DTZ Debenham Tie Leung.
In contrast, total caveats lodged for apartments and condos outside the prime districts rose a smaller 28 per cent last year to 9,114 deals.
Says the firm's executive director Ong Choon Fah: 'This trend has been happening not just in Singapore but across Asia. In Singapore, we've seen that the high-end market has taken off, partly because this is the segment which has seen more launches and hence, new products.
'And looking at the profile of foreign buyers, they're no longer just the traditional buyers from the immediate region like Indonesians, Malaysians and Hongkongers. The spread of foreign buyers is becoming more international, including Europeans, Americans and Australians, mainland Chinese and Indians.
'And during a market upturn, it's usually the prime segment that takes off first. We're also seeing some Singaporeans cashing in on this by selling their residences outside the prime district and moving to a prime area,' she added.
DTZ's analysis, which was based on caveats captured by the Urban Redevelopment Authority's Realis system, shows that last year's increase in prime district apartment and condo sales was seen in both the primary and secondary markets.
In the primary market, developer sales in the prime districts rose 92 per cent last year to hit a 10-year high of 1,864 units. This surpassed the last peak of 1,689 units in 2002, when developers adopted competitive strategies to clear stock.
DTZ attributed last year's sharp rise to several attractive launches by developers like 8 @ Mt Sophia, Parc Emily, Park Infinia at Wee Nam, and Watermark condo at Robertson Quay, which were last year's top-selling projects in the prime districts.
'This was also partly due to increasing investor interest upon early signs of recovery in the property market, including 'specuvestors' who bought with the intention of disposing the properties when market conditions are favourable,' DTZ said.
In the secondary or resale market, the number of apartments and condos which changed hands in the prime districts rose 60 per cent last year to 1,910 units. Part of the reason for the increase was continued interest in various relatively new completions like Amaryllis Ville.
Belmond Green and Amaryllis Ville topped the sales charts for prime district developments in the resale market, with 41 and 32 units, respectively, changing hands.
They were followed by The Arcadia (31 units), Valley Park (29 units) and The Tessarina (25 units). DTZ said another reason for the rise in prime district resale deals was the numerous collective sales in the prime districts last year.
Published March 13, 2006
Condo deals in prime districts hit 6-year high
Foreign buyers now include Europeans, Americans, Australians, Mainland Chinese and Indians: study
By KALPANA RASHIWALA
(SINGAPORE) Total transactions of private apartments and condos in the traditional prime districts 9, 10 and 11 soared to a six-year high of 3,774 units last year, reflecting a 74 per cent jump from 2004, shows the latest caveats analysis by DTZ Debenham Tie Leung.
In contrast, total caveats lodged for apartments and condos outside the prime districts rose a smaller 28 per cent last year to 9,114 deals.
Says the firm's executive director Ong Choon Fah: 'This trend has been happening not just in Singapore but across Asia. In Singapore, we've seen that the high-end market has taken off, partly because this is the segment which has seen more launches and hence, new products.
'And looking at the profile of foreign buyers, they're no longer just the traditional buyers from the immediate region like Indonesians, Malaysians and Hongkongers. The spread of foreign buyers is becoming more international, including Europeans, Americans and Australians, mainland Chinese and Indians.
'And during a market upturn, it's usually the prime segment that takes off first. We're also seeing some Singaporeans cashing in on this by selling their residences outside the prime district and moving to a prime area,' she added.
DTZ's analysis, which was based on caveats captured by the Urban Redevelopment Authority's Realis system, shows that last year's increase in prime district apartment and condo sales was seen in both the primary and secondary markets.
In the primary market, developer sales in the prime districts rose 92 per cent last year to hit a 10-year high of 1,864 units. This surpassed the last peak of 1,689 units in 2002, when developers adopted competitive strategies to clear stock.
DTZ attributed last year's sharp rise to several attractive launches by developers like 8 @ Mt Sophia, Parc Emily, Park Infinia at Wee Nam, and Watermark condo at Robertson Quay, which were last year's top-selling projects in the prime districts.
'This was also partly due to increasing investor interest upon early signs of recovery in the property market, including 'specuvestors' who bought with the intention of disposing the properties when market conditions are favourable,' DTZ said.
In the secondary or resale market, the number of apartments and condos which changed hands in the prime districts rose 60 per cent last year to 1,910 units. Part of the reason for the increase was continued interest in various relatively new completions like Amaryllis Ville.
Belmond Green and Amaryllis Ville topped the sales charts for prime district developments in the resale market, with 41 and 32 units, respectively, changing hands.
They were followed by The Arcadia (31 units), Valley Park (29 units) and The Tessarina (25 units). DTZ said another reason for the rise in prime district resale deals was the numerous collective sales in the prime districts last year.