http://www.straitstimes.com/archive/...r-low-20140218

New home sales pick up after Dec's 5-year low

Sell-out success of The Hillford helped boost sales in Jan, say experts

Published on Feb 18, 2014

By Cheryl Ong


NEW home sales picked up last month from the five-year low recorded in December after developers launched more units in the lead-up to the Chinese New Year.

The sell-out success of The Hillford, which is aimed at retirees, also helped to lift buying interest, property experts said.

Home seekers bought 565 new homes last month - well up on the 259 sales registered in December, according to Urban Redevelopment Authority (URA) data. This excludes sales at executive condominiums.

Three new projects that launched last month - The Hillford, The Panorama and Floraview - kicked off buying action, said ERA Realty key executive officer Eugene Lim.

URA figures show that developers launched 549 units last month compared with 118 in December.

The sales increase last month was led by transactions in the city fringe, where 363 units were shifted.

Analysts said stellar sales at The Hillford in Jalan Jurong Kechil helped shore up the numbers, after all 281 units of the 60-year leasehold development were snapped up for an average price of $1,100 per sq ft (psf) on the first day of its launch.

Sales at other city-fringe projects launched last year also contributed to the rise, with the 445-unit Thomson Three moving 15 units, for instance.

In the suburbs, there were 162 units sold, largely due to the launch of Wheelock Properties' The Panorama in Ang Mo Kio.

The 698-unit development sold 58 units, ranging from $650,000 for one-bedders to about $2.4 million for a five-bedroom home.

There were 40 sales in the prime central districts, including 11 at Duo Residences, four at V on Shenton, three at Leedon Residence and one at Novena Regency.

Ms Chia Siew Chuin, who is director of research and advisory at Colliers International, noted that the recent changes to borrowing curbs are unlikely to boost home sales.

The move on Feb 10 has made it easier for home owners to refinance mortgages for the homes they are living in.

However, sales this month are expected to improve with UOL Group's launch of Riverbank @ Fernvale last week and Frasers Centrepoint's upcoming Rivertrees Residences, experts said.

CBRE research head Desmond Sim added that developers are likely to time their launches carefully over the next few months as loan curbs have caused demand to shrink significantly.

"They don't want to vie for the same slice of the demand pie," he added.

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