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Thread: Sales of new private homes double to nearly 4,000 in Q1

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    Default Sales of new private homes double to nearly 4,000 in Q1

    http://www.businesstimes.com.sg/sub/...79219,00.html?

    Published March 31, 2010

    Sales of new private homes double to nearly 4,000 in Q1

    Overall prices rise 2-5%, with new highs in resale prices in some segments

    By UMA SHANKARI


    (SINGAPORE) Demand for new private homes in the first quarter of 2010 more than doubled compared to Q4 2009, according to a new report. Close to 4,000 new units were sold in Q1 2010, compared to only 1,860 in the previous quarter.

    The report, by CB Richard Ellis (CBRE), also said that overall private home prices rose by 2-5 per cent in Q1 2010. The price growth was supported mainly by resale transactions as developers maintained the prices of new launches in the same locations at last quarter's levels.

    In fact, resale prices in some segments hit new highs in Q1. Research from DTZ shows that resale prices of freehold landed homes as well as leasehold apartments outside the prime districts (a proxy for mass market homes) saw new peaks in Q1 2010.

    Buyers continued to be out in force despite compressed yields, government measures and the large number of new land sites released during the quarter by the government.

    'Many investors are buying in anticipation of future rises in rents and prices as the economy is improving and the long-term fundamentals of Singapore are strong,' said DTZ's executive director for residential Margaret Thean.

    In the prime districts of 9, 10 and 11, the average resale price for freehold landed homes rose by 5.7 per cent to reach a new high of $1,529 per square foot (psf) in Q1 - a 28.2 per cent rebound from the bottom one year ago. Resale prices of landed properties have now climbed for three consecutive quarters.

    Prices of leasehold homes outside the prime districts (mass market homes) also hit a new peak. Non-landed resale home prices rose 2.1 per cent to $623 psf in Q1 2010, surpassing the $615 psf achieved in Q4 2007.

    But the resale prices of luxury and prime freehold non-landed homes are still some 10.7 per cent and 1.9 per cent respectively below their previous highs, DTZ said. Prices of luxury homes rose 4.2 per cent to $2,500 psf in Q1, while prices of prime homes climbed by a smaller 3.7 per cent to $1,456 psf.

    The two segments still have room to gain as market interest has shifted from mass market to luxury and prime freehold homes.

    'Most of the new launches in the first quarter were freehold projects located in prime districts 9, 10 and 11,' noted Joseph Tan, CBRE's executive director for residential. These included Cube 8, Holland Residences, The Laurels and Waterscape. Sales were also strong for upmarket projects in the central business district. In Tanjong Pagar, the takeup at Altez and 76 Shenton Way was brisk because of their city locations and composition of small apartments.

    The buyer profile for new units also changed substantially in Q1. Based on caveats lodged to date, about 33.7 per cent of the buyers in the first quarter of 2010 were HDB addressees (who can be considered HDB upgraders), CBRE said. The proportion of HDB upgraders in Q1 is lower than the 63.7 per cent of HDB upgraders who bought new homes a year ago in the first quarter of 2009, after the lull in 2008.

    Added Mr Tan: 'Most of the new launches then were mass-market type projects such as Caspian, Double Bay Residences and Mi Casa. In the first quarter of 2010, most of the projects launched were more upmarket and are located in the prime districts of Sentosa Cove and in the Downtown Core.'

    Foreigners bought around 23.5 per cent of the new homes in Q1 2010. The top three nationalities were Indonesians, Malaysians and PRC Chinese.

    CBRE expects the take-up of new homes to fall to around 3,000 units in the second quarter of 2010. Home prices are expected to rise at a gradual pace, held in check by the government measures.

    Chua Chor Hoon, head of DTZ's South-east Asia research unit, likewise said that if the buying fever and price increase continue or intensify, more government measures are likely to be introduced. She expects private home prices to climb by 5-15 per cent in 2010.


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    http://www.straitstimes.com/Money/St...ry_508698.html

    Mar 31, 2010

    Private resale home prices up again

    Prices for mass market and landed homes hit new high: DTZ report

    By Joyce Teo


    PRICES of private, leasehold resale homes have shot past their previous peak - in late 2007 - according to a new report by property consultancy DTZ.

    The latest price rises for this segment, dominated by upgraders, while relatively modest, were enough to push average prices past the previous high. Landed resale homes saw the biggest price rises in the first quarter of the year to reach another new high while prime freehold prices edged nearer their previous peak.

    Sales of new homes were strong too. A CBRE report said nearly 4,000 new homes were sold in the first quarter - more than double the 1,860 in the previous quarter.

    Data from DTZ Research shows that prices of leasehold non-landed homes rose 2.1 per cent to $623 per sq ft (psf) in the first quarter, surpassing the $615 psf achieved in the fourth quarter of 2007.

    DTZ said prices of these homes saw the least increase among the main property categories as they were already at high levels and there was more resistance to higher prices in the mass market.

    Prices of prime freehold non-landed homes rose 3.7 per cent to $1,456 psf, 1.9 per cent below the previous peak. Luxury non-landed home prices rose 4.2 per cent to average $2,500 psf, which is 10.7 per cent below the previous peak, said DTZ.

    The Singapore Residential Price Index shows private home prices rose a mere 0.2 per cent month-on-month last month after a 2.2 per cent rise in January.

    Landed homes turned in another stellar showing in the first quarter, up 5.7 per cent to another new high of $1,529 psf.

    This sector has now rebounded by 28.2 per cent from its bottom a year ago. It was already the star performer of the private home market last year, rising far more in price than other housing types, and lifting it safely above the 2008 peak.

    Urban Redevelopment Authority data shows landed home prices jumped 7.7 per cent last year, compared with the 0.5 per cent rise in prices of non-landed homes.

    The leasing market, DTZ said, was stable, with rental values remaining unchanged for the third straight quarter. The average rental value of prime non-landed homes was $3.32 psf a month, still 32.8 per cent below the high in the second quarter of 2008, it said.

    The lower yields, however, had little impact on demand for new homes, as did recent government measures.

    'Many investors are buying in anticipation of a future rise in rents and prices as the economy is improving and the long-term fundamentals of Singapore are strong,' said DTZ's executive director (residential), Ms Margaret Thean.

    The firm's head of South-east Asia research, Ms Chua Chor Hoon, cautioned that more government cooling measures may be introduced if buying fever and price rises keep up - or intensify.

    Said Colliers International director for research and advisory Tay Huey Ying: 'At the rate the market is moving right now, there is some cause for concern. But unless mass market prices continue to rise by more than 5 per cent a quarter, the Government may not step in.'

    Ms Chua expects prices to rise more moderately - by 5 per cent to 15 per cent this year. 'The rise in landed home prices is expected to moderate this year, considering it has already risen quite a bit.'

    CBRE puts the rise in first-quarter home prices at 2 per cent to 5 per cent over the fourth quarter of last year, supported mainly by resale transactions as developers have maintained prices of new launches in the same locations at last quarter's levels.

    For instance, deals at The Sail @ Marina Bay averaged $2,213 psf in the first quarter, up from $2,101 psf in the previous quarter while Ardmore Park units sold at $2,982 psf, up from $2,936 psf.

    The high volume of new homes sold this quarter compared with last quarter shows the resilience of residential demand from both owner-occupiers and investors, CBRE said.

    Some new projects that did well recently include West Coast's The Vision, which sold 230 units, and [email protected], which sold all its 202 units.

    Most new launches in the first quarter were prime freehold projects; private home owners made up two-thirds of the buyers, with HDB upgraders accounting for the rest, said CBRE's executive director, residential, Mr Joseph Tan. The opposite was true a year ago, when most new launches were mass market ones, he said.

    Foreigners bought 23.5 per cent of the new homes in the first quarter, with the top three nationalities being Indonesian, Malaysian and Chinese.

    [email protected]

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