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Thread: New private home sales slide by 44%

  1. #1
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    Default New private home sales slide by 44%

    http://www.straitstimes.com/premium/...de-44-20121218

    New private home sales slide by 44%

    Just 1,087 units sold last month amid slow holiday season, cautious mood

    Published on Dec 18, 2012

    By Esther Teo, Property Reporter


    HOME buyers purchased just 1,087 new private units last month - the lowest figure this year - as the school holidays and festive season dampened sales.

    The figure is 44 per cent lower than the 1,948 units sold in October, as the sixth round of cooling measures introduced in early October also took a toll on buying momentum and market sentiment.

    Including executive condominiums (ECs), developers sold 1,266 homes, the Urban Redevelopment Authority (URA) said yesterday.

    Experts say developers turned cautious and held back launches last month, as they assessed the impact of the cooling measures on demand before deciding whether to push out new projects.

    Only 773 homes were launched for sale last month, well down on the average monthly launch of 1,987 units in the first 10 months of the year.

    Home buyers could also have hit the brakes as the subdued global economic outlook next year affected buying sentiment.

    Concerns also remain over the "fiscal cliff" in the United States and the debt crisis in Europe. These are likely to drag down growth next year should the situation worsen, cautioned Mr Lee Sze Teck, senior manager of training, research and consultancy at Dennis Wee Group.

    Mr Nicholas Mak, head of research at SLP International, said that some developers could be keeping their launches for next year instead, as the end of the year is a traditionally slow period owing to the holiday season.

    South-east Asia research head Chua Yang Liang at Jones Lang LaSalle noted, however, that the caps in loan terms imposed by the Monetary Authority of Singapore have also begun working through the property market.

    "Anecdotal evidence of developers offering discounts on their unsold units in the past month seems to indicate that the slowdown in sales is not due to just the year-end seasonality."

    But PropNex chief executive Mohamed Ismail said that even as transaction volume dips, prices are not expected to drop drastically. He expects the market to pick up in the first quarter of next year as a string of launches enter the market.

    Some of these include Sennett Residences in Potong Pasir, Urban Vista in Tanah Merah, Qbay in Tampines, Duo in Ophir Road and a condominium project in Jalan Lempeng.

    Still, even with last month's low figure, the property market is headed for a banner year.

    Already, an impressive 20,879 new private homes have been sold in the first 11 months of the year - easily eclipsing the record 16,292 units sold in 2010.

    Suburban homes have led the charge, making up 65 per cent of all homes sold last month. There were 209 homes sold in the city centre and 167 homes sold in the city fringe region, URA said.

    New private home sales for the year are easily expected to surpass the 21,000-unit mark, even though December is a traditionally slower month.

    Echelon at Alexandra View previewed recently and Forestville EC in Woodlands will begin online applications this weekend, noted Mr Joseph Tan, CBRE's executive director of residential.

    "Home prices are likely to remain stable with a marginal upside for projects with good access and strong attributes," he added.

    November's top-selling projects include Eco Sanctuary in Chestnut Avenue with 140 units sold at a median price of $1,050 per sq ft (psf), d'Leedon in district 10 with 133 units sold at $1,431 psf, and Riversails in Upper Serangoon where 81 units were snapped up at $858 psf.

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  2. #2
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    Default Private home sales in November down 44%

    http://www.businesstimes.com.sg/prem...wn-44-20121218

    Published December 18, 2012

    Private home sales in November down 44%

    Builders hold back launches till after traditionally slow year-end season

    By ong chor hao


    [SINGAPORE] Developers here sold 44.2 per cent fewer private homes in November compared with the month before, as they held back launches during the holiday season.

    Data from the Urban Redevelopment Authority (URA) showed that 1,087 private homes, excluding executive condominiums (ECs), were sold last month, compared with 1,948 in October.

    November's sales figures were the lowest since December 2011. Compared with the same period last year, transactions fell 36.1 per cent. The slump was largely due to a lack of major launches, market watchers said.

    Alan Cheong, head of research at Savills Singapore, noted that projects, such as the Echelon at Redhill, the Sennett Residence at Potong Pasir and the Spottiswoode Suites, did not make it to the market in November.

    "As demand for new homes tends to chase supply, the dearth of large project launches in any month would have a negative bearing on sales numbers," he said.

    Analysts said developers were holding back until after the festive season, noting that the end of the year is traditionally a low season.

    The latest round of property cooling measures may have played a part, too.

    Said Ong Teck Hui, national director for research and consultancy at Jones Lang LaSalle: "Although the year-end holiday season is setting in, the sharp drop in both units launched and sold in November does reflect impact from the loan tightening measures imposed in October."

    A total of 773 units were launched last month, down 53 per cent from the 1,633 units in October.

    No new ECs were launched in November, but 179 such homes were sold from earlier launches. Including these hybrid units, 1,266 homes changed hands, down from 2,624 the month before.

    Still, demand showed resilience, with homes sold exceeding those launched, analysts said.

    The top-selling development last month was the Eco Sanctuary in Upper Bukit Timah. It sold 140 units for a median price of $1,050 per square feet (psf); d'Leedon in Farrer Road sold 133 units at a median of $1,431 psf, while Riversails in Upper Serangoon transacted 81 units at a median of $858 psf. Bartley Residences also sold well, as did the Waterbay EC at Punggol.

    The highest psf price in November was for a unit in Scotts Square, which sold for $4,244 psf.

    Eugene Lim, ERA Realty's key executive officer, noted that new home sales continued to be "dominated by the mass market". Units from Outside Central Region made up 65 per cent of sales, excluding ECs, last month.

    For the first 11 months of 2012, developers moved 20,879 private homes (excluding ECs), adding to a record year. The previous mark for full-year sales was 16,292 units, set in 2010.

    Analysts expect 21,000-24,000 homes to be sold for the entire 2012.

    For ECs, 3,672 units were sold up to November, and some consultants expect full-year sales to cross the 4,000 mark.

    In December, sales figures could be supported by new launches. Analysts predict transaction volumes of 1,000-1,300 units.

    Besides the Echelon, Sennett Residence and Spottiswoode Suites, the likes of the Kingsford@Hillview Peak, Village@Pasir Panjang and the Whitley Residences could be launched. Three EC launches are also expected: City Life@Tampines, Forestville and The Topiary.

    The market should see a rebound in the first quarter, said Mohamed Ismail, chief executive officer at PropNex, as developers line up more projects.

    Joseph Tan, executive director (residential) at CBRE, flagged potential launches to include the Urban Vista at Tanah Merah, Qbay at Tampines and the Duo at Bugis.

    "Home prices are likely to remain stable with a marginal upside for projects with good access and strong attributes," he said.

    That said, there remains potential drag from an uncertain economic outlook and cautious employment prospects. Some analysts are expecting transactions to slow to 16,000-18,000 units next year.

    Savills' Mr Cheong has a dimmer view, saying sales could fall to 10,000-12,000 units in 2013 as land sales stabilise. The days where monthly sales hover around the 2,000 mark "may be a thing of the past", he said.

    However, prices are still set to increase mainly because of land cost inflation, he added.

  3. #3
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    can skip the article just read the last line...

    However, prices are still set to increase mainly because of land cost inflation, he added.
    In the final analysis.....its NOT whether you have a diploma,degree,masters OR PHD....its whether you have a HDB/PC/EC or LANDED...

  4. #4
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    Quote Originally Posted by radha08
    can skip the article just read the last line...

    However, prices are still set to increase mainly because of land cost inflation, he added.
    I think w EC hitting 3xx ppr, it will really be a time where we will see most sites above 4xx ppr soon ... Maybe developers will bid less aggressive? Just maybe ....

  5. #5
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    Quote Originally Posted by radha08
    can skip the article just read the last line...

    However, prices are still set to increase mainly because of land cost inflation, he added.
    kelong leh...farking SG!
    I took the road less traveled by, and that has made all the difference. - Robert Frost quotes (American poet, 1874-1963)

  6. #6
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    actually 1,000 private units per month is a healthy and sustainable figure. I rather this than 2,500 units per month.

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