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May 14, 2010

Private property strong in 2010

By Joyce Teo, Property Reporter


THE private homes market has slowed in the past fortnight, but experts feel 2010 will still emerge as a banner year for the sector.

They say sales of new private homes will come close to matching levels seen in the boom days of 2007, but transaction values are likely to be higher given the rise in prices.

According to a report from consultants CB Richard Ellis (CBRE), the total value of new home sales this year is expected to reach a level between the $16.22 billion transacted in 2007 and the $23.52 billion recorded last year.

CBRE's executive director for residential properties, Mr Joseph Tan, said in the report that the residential market at the start of this year reflected 'a follow-through of the momentum begun last year'.

The numbers so far certainly point to a similar boom-time result. Developers sold 4,380 new homes - landed and non-landed - in the first quarter. That suggests momentum for similar full-year transactions of around 14,000 achieved in 2009 and 2007, the report said. A record was set in 2007 when 14,811 new private homes were sold, although 2009 came close with 14,688 changing hands.

Mr Tan noted: 'Prices are generally higher in 2010, with demand remaining robust. Thus, the total value at the end of the year should be higher than that in 2009.'

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