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Thread: Private home sales up tenfold to 1,323 units in February

  1. #1
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    Default Private home sales up tenfold to 1,323 units in February

    Private home sales up 11 times to 1,323 units in February
    By Wong Siew Ying, Channel NewsAsia | Posted: 16 March 2009 2009 hrs
    Photos 1 of 1



    SINGAPORE: Sales of private homes shot up by over 11 times in February, with 1,323 deals done compared to the previous month.

    In January, developers sold a record low of just 108 private residential properties.

    Latest monthly figures released by the Urban Redevelopment Authority (URA) showed that the increase was largely driven by strong sales from properties like The Caspian, The Alexis and The Quartz.

    In all, 978 units changed hands in the three developments which are located in the suburban areas of Alexandra Road, Boon Lay Way and Buangkok Drive.

    Developers also placed more units for sale in February, fuelling the spike in demand. They launched 1,069 units, compared to just 204 units in January.

    - CNA/so
    eh... any need to change strategy? dun wait liao... buy now?

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    It's a bear market rally... volume is still too low to determine whether it is sustainable.

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    Default Developer home sales hit 18-month high

    http://www.businesstimes.com.sg/sub/...23908,00.html?

    Published March 17, 2009

    Developer home sales hit 18-month high

    By ARTHUR SIM


    (SINGAPORE) Developers sold 1,323 new housing units in February - eleven times more than in January.

    Urban Redevelopment Authority figures show sales hit their highest level since the previous peak of 1,723 units in August 2007, leading some to say that market momentum has returned.

    Colliers International's director for research and advisory Tay Huey Ying said that if developers stick with current pricing and product strategies, 'this trend will stay'.

    'We have always said there are buyers waiting to buy,' she said, adding that smaller units at lower prices 'are within a buyer's risk appetite'.

    DTZ senior director Chua Chor Hoon said: 'Despite the credit crunch there is still plenty of liquidity in the market. Many people have not committed to purchases in the past two years, and savings interest rates are so low now.'

    Barclays Capital economist Leong Wai Ho also reckons low interest rates could be a factor in the sales spike, saying 'abysmally low loan and deposit rates remove the incentive to keep idle balances in cash'.

    Still Mr Leong does not think February's momentum is sustainable. 'The risk going forward is that HDB upgrader demand is likely to unravel as the pain from rising joblessness and lower wage payouts starts to bite,' he said.

    He also noted that two new launches accounted for the spike in February. 'Take those two projects out and you have a good idea what is happening in the broader market,' he said.

    The two projects are the 712-unit Caspian at Jurong and the 293-unit Alexis @ Alexandra, which sold 517 and 293 units at median prices of $603 and $1,083 psf respectively.

    Other significant transactions in February were at the 625-unit The Quartz, with 168 units sold at a median price of $591 psf; the 38-unit Palmeria Residence with 22 units sold at a median price of $775 psf; and the 31-unit D'Chateau @ Shelford with 21 units sold at a median price of $1,000 psf.

    PropNex CEO Mohamed Ismail believes more than 50 per cent of February's sales involved HDB upgraders, as 70 per cent of the units sold were under $1,000 psf.

    'Developers have slashed prices, accepting minimal profits,' he said. 'This makes it irresistible for serious buyers, be they investors or HDB upgraders.'

    Jones Lang LaSalle's local director and head of research (South-east Asia) Chua Yang Liang said all regions registered strong take-up rates, with 102 units sold in the Core Central Region, 840 sold in the Outside Central Region and 381 units sold in the Rest of Central region.

    But he doubts the rally can be sustained. 'The strong market showing in February is likely to be a short-term blip in the overall larger scheme of things,' he said.

    While February sales were healthy, returned units from speculators without the means to hold could become a dampener. Already, classified advertisements have appeared for sub-sales at Caspian and Alexis.

    DMG Research analyst Brandon Lee thinks speculation is still 'subdued', with most buyers either Singaporeans or permanent residents purchasing units to occupy.

    'Volume in the sub-sale market remains tepid, at less than 100 units transacted in February,' he said.

    Selling 1,000 units a month will be hard to achieve, he feels. 'A more reasonable figure would be 500-600 units for the next three months. After that, the picture would possibly revert back to a normal 200-300 units as the economy worsens and the HDB resale market softens.'

    March sales have already hit about 300 units, with 210 sold at the 646-unit Double Bay at Simei, as well as about 25 at the 104-unit Domus in Novena. It is also understood that the 60-unit Kembangan Suites project is fully sold.

    Knight Frank's director of research and consultancy Nicholas Mak said that leaving aside Caspian and Alexis, February's sales of 513 units were the strongest in seven months.

    But he cautions that there is a 'limited' pool of buyers for small units, and says HDB upgraders could become more discerning. 'If an HDB upgrader moves from a four or five-room HDB flat to a one or two-bedroom condo, it's not really upgrading,' he said.

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    Default Private home sales up tenfold to 1,323 units in February

    http://www.channelnewsasia.com/stori...415667/1/.html

    Private home sales up tenfold to 1,323 units in February

    By Valarie Tan, Channel NewsAsia | Posted: 16 March 2009 2009 hrs


    SINGAPORE: The sale of private residential properties shot up more than tenfold in February to 1,323 units, compared to just 108 in January.

    Homebuyers thronged the showflats of mass-market projects like The Caspian in Boon Lay and The Alexis in Alexandra, and they propped up the property sales figures in February, accounting for more than 70 per cent of the units sold for the month.

    Property-watchers said those upgrading from public housing were attracted by affordable pricing and proximity to amenities like train stations.

    But with the economy likely to contract further, resulting in more job losses in the coming months, February's home sales may not be sustained.

    Priya Sengupta, associate director, Research & Consultancy, Savills, said: "The coming months may not see such a high take-up, but if the momentum goes on and off in this manner, the confidence will return."

    Observers said the February data suggested that buyers are willing to jump in at attractive prices, so developers are likely to launch similar projects with absolute unit prices at under S$1 million.

    Brandon Lee, investment analyst, DMG & Partners Securities, said: "I would expect more of these to come in the form of mass market. On the other hand, we could also be looking at a slow progression towards mid and prime projects. These projects might include re-launched projects at heftier discounts."

    Analysts said new mass market, mid-tier properties are likely to fall in the price range of between S$550 and S$600 per square foot. Developers are also likely to offer hefty discounts of up to 30 per cent for some selected properties.

    Observers said they expect prices of prime properties to weaken further, falling to about S$1,600 per square foot.


    - CNA/so

  5. #5
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    Property analyst say this rally may not be able to sustain.

    Personally , I feel those figure are those smaller units.


    Recession for 2009 is deeper than any other yrs
    Job lost also worse.
    Technically, price of property should be worse or same as 1997 and 2004.

    But is not the case......

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    Quote Originally Posted by focus
    It's a bear market rally... volume is still too low to determine whether it is sustainable.
    Do u mean volume too high to be sustainable? Feb 2009 take up volume is a ten fold increase vs Jan and 18 month high - 10X.

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    Default Home sales surge on new launches

    http://www.straitstimes.com/Prime%2B...ry_350967.html

    March 17, 2009 Tuesday

    Home sales surge on new launches

    Analysts ask if February spike from new heartland condos can be repeated

    By Joyce Teo


    SALES of new private homes surged dramatically last month to the sort of levels seen in the property boom.

    However, some property analysts cautioned that the spike in sales to 1,323 units in February may have been a blip - attributable largely to two popular launches of mid-priced heartland condos.

    Still, the new Urban Redevelopment Authority (URA) figures showed that last month's bumper sales were equal to more than a quarter of all the sales of new private homes last year - 4,264 units.

    The February figure is also a huge jump from the dismal 108 unit sales in January as buyers stayed away amid deepening economic gloom and Chinese New Year festivities.

    'It has been more than one year since we last saw total transactions surpassing the 1,000 mark,' said Jones Lang LaSalle's local director and head of research, South-east Asia, Dr Chua Yang Liang.

    The launch of new units was also up sharply last month, to 1,069 units from just 204 units in January.

    Analysts say two newly-launched heartland condos, Alexis and Caspian, proved especially popular with upgraders who had been biding their time amid the sharp run-up in prices during the boom.

    All 293 units at Alexis in Alexandra Road were sold at a median price of $1,083 per sq ft (psf) while Caspian in Jurong sold 517 units at a median price of $603 psf. Prices started from $450,000 at Alexis and $340,000 at Caspian.

    A third project, originally launched in 2006, The Quartz in Buangkok Drive, sold 168 units last month at a median price of $591 psf after it was relaunched at a lower price. The 99-year leasehold condo was first released at $490 psf on average, which rose to $650 psf in 2007.

    Apart from these three, no other project had notable sales. Livia in Pasir Ris launched another 80 units last month, selling just 16 at a median price of $620 psf. A new launch, The Beverly in Toh Tuck Road, offered 31 units last month but sold none. It sold a few this month.

    For a second straight month, no units were sold at the decidedly upmarket price range of $2,500 psf to $3,999 psf, said Knight Frank's director of research and consultancy, Mr Nicholas Mak.

    CBRE Research executive director Li Hiaw Ho said the top three sellers were projects in the heartland, where a majority of the buyers are HDB upgraders.

    They have been waiting on the sidelines during the run-up of home prices in 2006-2007, when there was a lack of mass-market projects for sale, he said.

    Apart from pent-up demand, consultants said sales at Caspian and Alexis were driven by the availability of small, affordable units - mainly under $800,000.

    Private home sales for the January to March quarter could be about 1,800 to 2,000 units, according to Mr Li, going by the 'brisk sales' at Double Bay Residences, Suites @ Kembangan and others so far this month. The 646-unit Double Bay in Simei has, for instance, already posted sales of at least 210 units at $600 psf to $650 psf since its March 6 preview.

    joycet[email protected]

    TOP 5 SELLERS IN FEBRUARY

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