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Thread: Private home sales in August jump by 165%

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    Default Private home sales in August jump by 165%

    Private home sales in August jump by 165%

    SEP 16, 2017

    Grace Leong


    In another bullish sign for the local property market, the number of new private homes sold last month soared by 165 per cent from a year earlier.

    Just one major project was launched over the month - Le Quest in Bukit Batok.

    Analysts say buying momentum continues to pick up in the face of more aggressive bids by developers for land sites and as the level of unsold stock from earlier launches falls.

    Developers sold 1,241 units last month, up from 468 a year earlier, according to Urban Redevelopment Authority (URA) data released yesterday.

    No executive condominiums (ECs) were launched last month, but developers moved 340 EC units, compared with 331 last year. Still, it was well down from the 980 EC units sold in July, given red-hot sales at Hundred Palms Residences EC in Yio Chu Kang Road, which sold all of its 531 units at its launch.

    In total, 1,581 private homes and ECs were sold last month, up 98 per cent year on year, but down 24 per cent from 2,091 snapped up in July.

    Consultancy JLL said sales of private homes may cross the 12,000 mark by the year-end at the current pace - the most since 2014, after mortgage rules were tightened.

    Already, the total number of private homes sold in the first eight months is 8,391 units, surpassing the 7,972 units sold all of last year, said Mr Ong Teck Hui, JLL's national director of research and consultancy.

    "The improvement of primary sales in August will further reinforce sentiments that the property market is bottoming out," said Dr Lee Nai Jia, head of research at Edmund Tie and Company.

    Developers are selling inventory of unsold units from previous launches at a much faster pace, said Mr Nicholas Mak, executive director of the ZACD Group. Last month, there were 4,294 unsold units, compared with 9,000 a year ago.

    PropNex Realty chief executive Ismail Gafoor believes that buyers "fear prices may increase by more than 10 per cent next year, given the recent aggressive land bids from recent land sales".

    August private home sales jumped 11.7 per cent from the 1,111 homes sold in July - the second straight month when transactions exceeded 1,000.

    Developers launched 774 homes, excluding ECs, in August, up 31 per cent year on year, and up 29 per cent from July.

    The top-selling private residential project last month was Chinese developer Qingjian Realty's Le Quest. It sold 286 units at a median $1,309 per sq ft.

    Le Quest, launched prior to the start on Aug 22 of the seventh lunar month, when some buyers typically refrain from buying homes, made up close to a quarter of the sales last month, said Mr Desmond Sim, head of CBRE Research, Singapore and South East Asia.

    According to the caveats, 85.3 per cent of units went to Singaporeans, said Dr Lee.

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    Developers' private-home sales so far this year shoot past 2016's full-year figure

    Even start of Hungry Ghost Month failed to curb buyers' appetite; handful of new launches to come

    SEP 16, 2017

    LYNETTE KHOO


    DEVELOPERS' private home sales in the first eight months of this year have already surpassed that made in the whole of last year - with buying fervour in the market having been unrestrained even in August, which coincided with the lunar Hungry Ghost Festival.

    An estimated 8,391 private residential units were sold between January and August, 60.3 per cent more than the corresponding period last year, and also higher than 2016's full-year sales of 7,972 units.

    The 8,391 figure also beats the average 7,576 units sold in the three years from 2014 till last year; these were the years following the implementation of the total debt servicing ratio (TDSR) in June 2013.

    These figures were compiled from the July and August new home-sales figures from the survey on developers done by the Urban Redevelopment Authority (URA) and the URA's second-quarter real-estate data.

    Including executive condominiums (ECs), the total number of homes sold by developers is estimated to have crossed 11,700 units in the first eight months. This is a 42 per cent jump over the same period last year, and surpasses the 10,285-unit annual average registered from 2014 to 2016.

    JLL national director of research and consultancy Ong Teck Hui said: "Overriding demand by buyers who are trying to purchase at close to the market trough will continue to keep transactions buoyant.

    "At the current pace, we may be seeing sales of 12,000 to 13,000 private residential units by developers in 2017," he said.

    PropNex Realty chief executive Ismail Gafoor suggested that the total number of transactions may even cross the 16,000 mark by year's end, given the existing positive trend and the buzz in the new private homes segment. His estimate comprises 12,000 private properties and 4,000 EC units.

    "Buyers are more prepared to pick up existing projects that are rightly priced, fearing that prices might increase by more than 10 per cent come next year, with the recent aggressive land bids from recent land sales," he said.

    The sales momentum of housing developers was sustained last month, despite there having been only one project launch; 1,241 private residential units and 340 EC units were sold.

    The number of private residential units sold by developers in August was 165 per cent more than a year ago, and 12 per cent more than in July.

    The total sales tally of 1,581 private homes and ECs in August was a 98 per cent surge over the figure a year ago, but a 24 per cent decline from July - the month when sales numbers were bolstered by Hundred Palms Residences in Yio Chu Kang Road, where all 531 units were sold within seven hours of the launch.

    Analysts noted that the start of the lunar seventh month in late August did not put the brakes on the buying momentum; the Hungry Ghost Festival is when developers generally avoid launching new projects and some homebuyers avoid buying properties, as they believe it is an inauspicious time to do so.

    Some 64 per cent of the launched private residential units in August were in the suburban region, which accounted for a corresponding 62 per cent share of private home sales in August.

    The top-selling project in August was Le Quest, a mixed development in Bukit Batok by Chinese developer Qingjian Realty; 286 units were sold at a median price of S$1,309 per square foot.

    The developer is said to be holding back the second phase of the sales launch in anticipation of a possible upturn in the property market.

    Lee Nai Jia, who heads research at Edmund Tie & Company, said the improvement of primary sales in August will reinforce sentiments that the property market is bottoming out. The improvement in project sales is across the board, including projects that were launched earlier.

    The steady sales of previously launched projects in a quantum-sensitive market is paring down developers' inventory of palatable quantums, which will affect future monthly sales performance if new launches are not forthcoming, CBRE head of research Desmond Sim warned.

    "CBRE is still expecting a U-shaped recovery in prices, but the current trough cannot remain at this level much longer as land is increasingly being bought at higher prices," he said.

    "September's sales may be impacted by the Hungry Ghost month and the possibility that there may be limited launches this month."

    The handful of launches in the rest of this year include Parc Botannia in Fernvale Road by Sing Holdings and Wee Hur; Kandis Residence by Tuan Sing; Rivercove Residences EC by Hoi Hup Realty and Sunway Developments; and City Development's New Futura in District 9.

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    This is getting scary....good for everyone but if the government lifts those cooling measures, the bubble may get even bigger. So, is it better to adjust those cooling measures now so that growth can be moderated and bubbles not be allow to form? We need wisdom from those in charge soon....

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    Quote Originally Posted by KS Tan View Post
    This is getting scary....good for everyone but if the government lifts those cooling measures, the bubble may get even bigger. So, is it better to adjust those cooling measures now so that growth can be moderated and bubbles not be allow to form? We need wisdom from those in charge soon....
    With all the Billion spend where do you think is the best place to get it back.

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