Buyers vote to wait, new home sales slow after GE

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http://www.businesstimes.com.sg/sub/...43575,00.html?

Published June 16, 2011

Buyers vote to wait, new home sales slow after GE

May sees 13% drop in sales, June may be even weaker as buyers study new minister's policies

By UMA SHANKARI


(SINGAPORE) Sales of new private homes (excluding executive condos) fell 13 per cent month-on-month in May as buying interest cooled in the face of policy risk.

Developers sold 1,575 new private homes in May, down from 1,805 units in April.

Including executive condominiums (ECs), 1,825 new homes were sold by developers in May, a 5 per cent dip from the 1,918 new private homes and ECs sold in April.

Analysts attributed the drop to last month's general election (GE), which could have prompted buyers to assume a 'wait-and- see' approach in anticipation of new cooling policies.

'Apart from the market taking a breather in the lead-up to the GE in the first weekend of May, some developers and buyers could have adopted a wait- and-see approach, pending clearer directions on impending housing policy changes and measures post-GE,' said Chia Siew Chuin, Colliers International's director of research & advisory.

'Some buyers could also have become more price- sensitive and selective,' she added.

Sales in June are expected to be even weaker than in May as developers and property agents have reported slower home sales since last week, after National Development Minister Khaw Boon Wan cautioned against market exuberance in his blog.

'June sales will drop because we have a new minister who has sounded a strong warning,' said International Property Advisor chief executive Ku Swee Yong.

'He (Mr Khaw) also said that he will ramp up the supply of new HDB flats this year and next year. This could affect sales of mass-market homes as some buyers might decide to wait for greater clarity on where the new HDB flat supply will be before they decide what to buy.'

Echoed Li Hiaw Ho, executive director of CB Richard Ellis (CBRE): 'With the government's plan to release land for another 8,115 new private homes in the second half of 2011 via its confirmed land sales schedule, and to release 25,000 (new) HDB flats for sale for the whole year, there is some degree of apprehension as to how it will impact the mass-market segment.'

In May, sales in the outside central region (OCR), where suburban mass market condos are located, accounted for 60 per cent of all new private homes sold over the month. Developers sold 945 units in the OCR last month.

All three private housing projects with the most number of units sold in May were located in the OCR. Terrasse in Hougang sold 184 units at a median price of $994 per square foot (psf), Foresque Residences in Bukit Panjang sold 141 units at a median price of $1,108 psf, and Eight Courtyards in Yishun sold 137 units at a median price of $806 psf.

Over in the mid-tier rest of central region (RCR), developers sold 458 private homes in May, making up 29 per cent of all private homes sold during the month.

Sales of high-end and luxury homes in the prime core central region (CCR) continued to be subdued. Just 172 units (11 per cent of all private homes sold) were bought in the CCR.

But a new record was set for private home prices with the sale of a unit in The Marq on Paterson Hill for $5,842 psf, surpassing the previous high of $5,600 psf set in October 2007 at The Orchard Residences. Two other upmarket projects in the CCR - The Peak @ Cairnhill and Tomlinson Heights - sold four units each at median prices of $2,637 psf and $3,129 psf respectively.

Analysts also noted that in line with the more muted market sentiment, developers cut down on the number of new homes they launched in May. They rolled out just 1,215 new private homes - a sharp 41 per cent drop from the 2,055 new private homes launched in April.

The lower launch figure for May was also due to many small projects being put on the market.

But analysts said that while home sales fell month-on-month in May, there is still not much evidence that the last round of demand-side cooling measures - introduced in January - have had a significant impact on the private residential market as sales are still about 45 per cent higher than in May 2010.

CBRE also noted that the number of new homes sold in the second quarter of 2011 will still be higher than in Q1.

The firm predicts that more than 4,000 new private homes (excluding ECs) will be sold over the whole of Q2 - higher than the 3,595 new homes sold in Q1. But it added that the take-up of new homes in Q3 is likely to be lower than in Q2.

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http://www.straitstimes.com/PrimeNew...ry_680263.html

Jun 16, 2011

New home sales down last month

But the May figure of 1,575 units is still the third-highest in a year

By Esther Teo, Property Reporter


Terrasse condo in Hougang (above) and Foresque Residences off Upper Bukit Timah were among last month's top sellers. Terrasse sold 184 units at a median price of $994 per sq ft and Foresque Residences sold 141 units at a median price of $1,108 psf. -- PHOTO: MCL LAND, WING TAI HOLDINGS

SALES of new private homes eased 13 per cent from April as buyers turned cautious and developers held back on big launches.

Some market watchers also believe the general election may have had a dampening effect, with some potential buyers taking a wait-and-see approach.

There were 1,575 units sold last month, down from April's blistering 1,805 transactions, suggesting that the January cooling measures have prevented overheating.

But experts note that last month's numbers still represent the third-best monthly sales over the past year, topped only by April and an even hotter November, when 1,915 new homes were sold.

If executive condo (EC) sales are included, last month's number swells to 1,825 units.

The fall in sales from April has reduced the possibility of another round of cooling measures, experts added, although there are signs in the latest figures that demand is holding up quite well.

Mr Tan Kok Keong, OrangeTee's head of research and consultancy, noted that sales in projects launched before last month were still strong.

Eight Courtyards in Yishun and Hedges Park Condominium in Upper Changi, for example, found buyers for about 210 units in total in May, a month after their initial launches.

But the number of launches fell across the board last month as developers held back releasing new properties while a large amount of stock remained unsold, experts added.

SLP International research head Nicholas Mak noted that the number of launched but unsold units has been creeping up. If ECs are included, this number hit 5,030 last month - significantly more than last year's average of 3,700 units.

But Mr Mak said this is 'not a cause for alarm or unmanageable' as yet, adding that if sales keep up the pace seen so far this year, the supply can be absorbed.

In fact, previously launched units in suburban areas are being mopped up.

Sales at The Waterline near Serangoon and The Lakefront Residences in Jurong last month have recorded a take-up rate of more than 100 per cent. This means the number of units sold is higher than the number launched that month. Suburban home sales have also supported the market, commanding 60 per cent of new home sales.

It is a different story in the city centre, according to Dr Chua Yang Liang, head of research at Jones Lang LaSalle South-east Asia, who noted that there have been 'significant falls' in both sales and launches.

'These (94 launched units in the city centre) are the lowest (monthly) number since March 2009 and highlight the existing supply pressure in this market as previously launched units remain unsold.' Yet a unit at The Marq on Paterson Hill set a price record of $5,842 per sq ft (psf) while 10 apartments in projects such as Tomlinson Heights and The Laurels in the Orchard area were sold for more than $3,000 psf.

Mr Mak said these results do not signal a return of the luxury market as the numbers pale in comparison with the 217 units sold above $3,000 psf in July 2007.

Experts expect this month's sales to stay healthy although buyers are likely to be more cautious as they await clearer policy directions. The mid-year school holidays could also mean a quieter market.

Colliers International's director of research and advisory Chia Siew Chuin said this month's sales are likely to stay above 1,000 but are unlikely to surpass last month's level.

CB Richard Ellis executive director Li Hiaw Ho added that up to 8,000 new homes may be sold in the first six months of the year, although only 3,796 caveats were lodged between January and last month. This is because lodging caveats is voluntary and is a delayed process.

Last month's top-selling projects included Terrasse in Hougang, with 184 units moved at a median price of $994 psf, and Foresque Residences off Upper Bukit Timah, which found buyers for 141 units at a median of $1,108 psf.

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http://www.todayonline.com/Business/...ut-more-supply

Private home sales fall as Government pushes out more supply

by Linette Lim

04:47 AM Jun 16, 2011


SINGAPORE - Private home sales fell 12.7 per cent last month, compared to April, and analysts expect sales - as well as prices - to moderate further given the Government's plans to push out more supply in the coming months.

Data released yesterday by the Urban Redevelopment Authority (URA) showed that 1,575 private homes were sold last month, compared to 1,805 units sold in April.

Total sales, including Executive Condominiums, were 1,825 - a dip of 4.8 per cent from April.

More public and private residential units are in the pipeline, with the Government bringing forward Build-to-Order projects and releasing more land to developers under the Government Land Sales (GLS) programme.

Jones Lang LaSalle head of research (South-east Asia) Chua Yang Liang said: "Given the kind of supply conditions in the public housing market and the policy that may be introduced, there is a chance that some of these marginal or fringe buyers in the private housing market - particularly those in the mass market (or) upgraders market - may choose to move back to public housing."

Analysts from Colliers International and Jones Lang LaSalle reckon that private home sales this month will moderate to between 800 and 1,200.

Colliers International director of research and advisory Chia Siew Chuin noted that buyers are "becoming increasingly price-sensitive amid strengthening prices".

Said Ms Chia: "They are expected to be more selective and cautious in their property purchases going forward, with some likely to prefer waiting for clearer direction on possible policy changes from the Government,"

A total of 1,215 units were launched last month, plunging 41 per cent from 2,055 units in April.

The most expensive property sold last month was The Marq on Paterson Hill, where a unit was sold at a median price of S$5,842 dollars per sq ft (psf).It broke the previous Central Core Region high of S$5,600 psf.

The best selling private residential development was Terrasse at Terrasse Lane - it sold 184 units at a median price of S$994 dollars psf.