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Thread: New private home sales cool rapidly in October

  1. #1
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    Default New private home sales cool rapidly in October

    http://www.straitstimes.com/archive/...tober-20121116

    New private home sales cool rapidly in October

    Published on Nov 16, 2012

    By Esther Teo Property Reporter


    NEW private home sales plummeted 26 per cent last month as the sixth round of cooling measures took some heat out of the market.

    Buyers snapped up 1,948 units in October compared with 2,621 in September - a decline likely caused in part by an Oct5 policy change aimed at preventing buyers from over-extending themselves.

    If executive condominium units were included, last month's sales would total 2,624, with suburban units again powering the new-homes market.

    Last month's slower sales will not prevent this from being a landmark year for residential property. There were 19,507 private homes sold in the first 10 months - easily eclipsing the record of 16,292 sold in all of last year.

    Experts say the latest cooling measures probably hit buying sentiment, but developers also took a breather, holding back launches as they took stock of the possible impact.

    ERA Realty key executive officer Eugene Lim said that while sales volumes fell, the fact that almost 2,000 new units were transacted indicates that the market remains robust. Home buyers have quickly got used to the new restrictions, he added.

    New-sales figures last month also look strong given that the average monthly sales were 1,364 units last year and 1,385 in 2010.

    "The market will continue to be fuelled by high liquidity and attractive home loan interest rates. Also, private property and Housing Board home owners who have made profits are re-investing their gains into the property market," Mr Lim said.

    "So market confidence is still high, despite warnings of a slower economy going forward."

    Knight Frank research head Png Poh Soon said price-sensitive buyers were drawn to projects with prices below $1.5million last month.

    New projects like Riversails, which sold at a median price of $848 per sq ft (psf), and Skies Miltonia at $1,034 psf have had warm responses, he noted.

    As developers have sold most units in previously launched projects, especially in suburban areas, more launches can be expected in the lead up to Christmas.

    These include the 483-unit Eco Sanctuary, the Echelon with 508 units, the 338-unit Sennett Residence and Spottiswoode Suites, a development of 175 homes.

    Colliers International research and advisory director Chia Siew Chuin noted that some potential buyers may be priced out of the market due to the tighter mortgage rules. Some may also postpone purchases in anticipation of price falls, or while they take stock of how the measures will affect them.

    The year-end school and festive holidays could also sideline some buyers.

    "As a result, developer sales volumes could soften from the year-to-date's monthly average of 1,979 units to hover around 1,300 to 1,500 units in the last two months," she said.

    But most experts expect sales this year to hit a record of about 22,000 units.

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    Last edited by reporter2; 19-11-12 at 18:02.

  2. #2
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    Default New private home sales take a hit after mortgage curbs

    http://www.businesstimes.com.sg/arch...curbs-20121116

    Published November 16, 2012

    New private home sales take a hit after mortgage curbs

    Developers held back launches to assess impact of Oct 6 measures

    By Kalpana Rashiwala


    [SINGAPORE] Home sales by developers slowed significantly as they held back launches and took stock of curbs on home loan tenures which took effect on Oct 6.

    Statistics compiled by the Urban Redevelopment Authority based on developers' sales data show that 1,948 private homes excluding executive condos (ECs) were sold in the primary market in October, down 25.7 per cent from September.

    However, no alarm bells have been set off, with many market watchers noting that last month's sales still exceeded the 1,633 units which developers launched in the same period, continuing a trend seen since June. The October launch figure was down 26.6 per cent from September.

    Knight Frank chairman Tan Tiong Cheng says: "The general direction in terms of home buying volume in the primary market still seems to be up. Month to month, there may be some cooling off. There's bound to be some reaction when government introduces more sets of measures. People sit back, reflect and hold back their buying decision for a while.

    "If there's no price drop, they'll find a way around the measures, for example, buying property in their children's names to get around the lower loan-to-value limit for those with an existing home loan and to save on the 3 per cent additional buyer's stamp duty."

    The latter is payable by Singaporeans who own two existing residential properties and buy their third or subsequent property.

    Last month's 1,948-unit sales was up 39.9 per cent from October 2011.

    In the first 10 months of this year, developers have sold 19,792 private homes. Colliers International director Chia Siew Chuin predicts the pace of sales will slow from the year-to-date average monthly sales volume of 1,979 units to around 1,300-1,500 units each for November and December. She cites the school holiday and festive season along with a more cautious mood among those affected by the tightened mortgage rules.

    Still, the full-year tally will touch a fresh high, forecast at around 22,000 to 24,000 units by property agents. The previous record, in 2010, was 16,292 units. Last year, the figure was 15,904 units.

    Jones Lang LaSalle national director Ong Teck Hui said that of the 1,633 private homes developers launched last month, only 659 were in fresh projects. The majority 974 units were newly released units from earlier projects. "This reflects caution among developers amid uncertainty following the MAS measures."

    Last month, developers sold 676 ECs - a public-private housing hybrid with - 4.5 times September's sale volume of 150 units.

    SLP International executive director Nicholas Mak suggests some demand for private homes especially in suburban locations last month was channelled to ECs. Developers released 777 new ECs in October, after there were no launches in the previous three months. In all, developers sold 3,493 ECs in the first 10 months - surpassing the 2,883 units for the whole of last year and 1,052 in 2010.

    Including ECs, developers moved 2,624 private homes last month, down 5.3 per cent from September's 2,771 units, but up 59.7 per cent year on year.

    October's top-selling project was Heron Bay, an EC project on Upper Serangoon, with 354 units sold at a median price of $738 per square foot (psf), followed by the Skies Miltonia condo in Yishun (309 units sold at $1,034 psf median price).

    The highest psf achieved by a developer last month was a unit at Sage in Nassim Road which fetched $4,289 psf.

    Outside Central Region, home to mass-market projects, made up 76 per cent of the 1,948 private homes excluding ECs sold last month.

    Despite some caution setting into the market over potential oversupply setting in over the next few years, developers continue to chase private housing sites at state tenders amid the low interest rate environment. Likewise, investors are expected to continue snapping up properties at new launches.

    Knight Frank's Mr Tan says: "Those aged 40 and above, owning at least one property and with savings, will have capacity for another investment property. If you give them an alternative safe investment - such as inflation-linked government bonds with say three-year tenure and coupon of about 3-3.5 per cent per annum - it will soak up a big chunk of liquidity in the market going into property."

  3. #3
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    cool is good. 2000 units a month on average equates to 24000 units a year. as long as suplly is arpund the same pace, this will make things sustainable in the long term.

  4. #4
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    Quote Originally Posted by kane
    cool is good. 2000 units a month on average equates to 24000 units a year. as long as suplly is arpund the same pace, this will make things sustainable in the long term.
    That figure is made up by EC mainly, and the % is growing. Good luck to private.

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