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16-12-2011, 08:18 AM
The Straits Times
Dec 16, 2011
Spike in private home sales last month
Rise of 22 per cent 'may have been trigger' for Dec 8 cooling measures
By Esther Teo
NEW private home sales in Singapore spiked 22 per cent last month from the month before as buyers shrugged off a weakening global economy.
Analysts say the striking jump in sales could have been the catalyst for the Government's move to bring in tough new market cooling measures on Dec 8.
Home hunters were especially keen on mass market homes, as developers found buyers for a total of 1,701 units in November, a strong rebound from a 15 per cent slide in October.
This was the second highest number of sales this year after April's 1,805 units.
Suburban homes made up 78 per cent of all sales. Including sales of executive condominiums - a hybrid of private and public housing - the total was 1,854 units.
Analysts say the Government would have been aware of the latest figures early this month, and that this might have prompted its new measures, including an additional 10 per cent stamp duty for foreign buyers.
A report by broking house DMG & Partners said that 'we believe the strong sales in the mass segment may have been the catalyst for the (new stamp duty)'. DMG expects sales to fall following the measures, as buyers wait to see if prices drop.
Launches were equally buoyant as developers pushed out 1,979 new homes - again, second only to April's figures - in an attempt to ride on the buying momentum seen in the past few months.
Experts say new mass market launches such as Bedok Residences and The Palette in Pasir Ris helped drive sales, fuelled also by low interest rates.
The latest figures take the number of homes sold in the first 11 months of the year to 15,393 units, just 899 units shy of last year's record-breaking 16,292.
PropNex chief executive Mohamed Ismail called it a 'remarkable November', attributing it to demand for mass market homes from both foreign buyers and HDB upgraders.
Ms Chia Siew Chuin, director of research and advisory at Colliers International, said: 'The strong level of demand bears testimony to the strength of the underlying demand for private residential homes on the back of prevailing low interest rates.'
However, she noted that market activity in the city centre and city fringe regions were thin.
Only 82 city centre homes were sold last month, slightly up from the 78 homes sold in October, while 291 city fringe homes were sold, well down on the 420 homes sold in October.
Expect a much quieter December due to the seasonal slowdown, as well as buyers adjusting to the new measures.
New home sales for the full-year are expected to come close to last year's record, Colliers' Ms Chia said.
But the luxury market is expected to be hardest-hit given the focus on foreigners in the new measures.
Mr Joseph Tan, executive director for residential services at CBRE, expects prices of prime and luxury homes to fall 10 to 15 per cent next year, while mass market homes could dip by 5 to 10 per cent.
This is because foreigners are most active in the high-end market. They accounted for 29 per cent of homes sold in the city centre, 20 per cent in the city fringe and a more subdued 14 per cent in suburban areas, according to caveats lodged with the Urban Redevelopment Authority in the first 11 months of the year, Mr Tan noted.
ERA Realty's key executive officer Eugene Lim expects the market to take a breather this month and next due to the recent changes and the festive season.
'We can expect slower sales by about 20 to 30 per cent,' he said.
Savills' research and consultancy associate director Alan Cheong also expects transaction volumes to be tepid as buyers take a wait-and-see attitude. But developers may use more creative marketing strategies to keep sale prices on a per sq ft basis stable while offering buyers incentives through various rebates, he said.
esthert@sph.com.sg
Dec 16, 2011
Spike in private home sales last month
Rise of 22 per cent 'may have been trigger' for Dec 8 cooling measures
By Esther Teo
NEW private home sales in Singapore spiked 22 per cent last month from the month before as buyers shrugged off a weakening global economy.
Analysts say the striking jump in sales could have been the catalyst for the Government's move to bring in tough new market cooling measures on Dec 8.
Home hunters were especially keen on mass market homes, as developers found buyers for a total of 1,701 units in November, a strong rebound from a 15 per cent slide in October.
This was the second highest number of sales this year after April's 1,805 units.
Suburban homes made up 78 per cent of all sales. Including sales of executive condominiums - a hybrid of private and public housing - the total was 1,854 units.
Analysts say the Government would have been aware of the latest figures early this month, and that this might have prompted its new measures, including an additional 10 per cent stamp duty for foreign buyers.
A report by broking house DMG & Partners said that 'we believe the strong sales in the mass segment may have been the catalyst for the (new stamp duty)'. DMG expects sales to fall following the measures, as buyers wait to see if prices drop.
Launches were equally buoyant as developers pushed out 1,979 new homes - again, second only to April's figures - in an attempt to ride on the buying momentum seen in the past few months.
Experts say new mass market launches such as Bedok Residences and The Palette in Pasir Ris helped drive sales, fuelled also by low interest rates.
The latest figures take the number of homes sold in the first 11 months of the year to 15,393 units, just 899 units shy of last year's record-breaking 16,292.
PropNex chief executive Mohamed Ismail called it a 'remarkable November', attributing it to demand for mass market homes from both foreign buyers and HDB upgraders.
Ms Chia Siew Chuin, director of research and advisory at Colliers International, said: 'The strong level of demand bears testimony to the strength of the underlying demand for private residential homes on the back of prevailing low interest rates.'
However, she noted that market activity in the city centre and city fringe regions were thin.
Only 82 city centre homes were sold last month, slightly up from the 78 homes sold in October, while 291 city fringe homes were sold, well down on the 420 homes sold in October.
Expect a much quieter December due to the seasonal slowdown, as well as buyers adjusting to the new measures.
New home sales for the full-year are expected to come close to last year's record, Colliers' Ms Chia said.
But the luxury market is expected to be hardest-hit given the focus on foreigners in the new measures.
Mr Joseph Tan, executive director for residential services at CBRE, expects prices of prime and luxury homes to fall 10 to 15 per cent next year, while mass market homes could dip by 5 to 10 per cent.
This is because foreigners are most active in the high-end market. They accounted for 29 per cent of homes sold in the city centre, 20 per cent in the city fringe and a more subdued 14 per cent in suburban areas, according to caveats lodged with the Urban Redevelopment Authority in the first 11 months of the year, Mr Tan noted.
ERA Realty's key executive officer Eugene Lim expects the market to take a breather this month and next due to the recent changes and the festive season.
'We can expect slower sales by about 20 to 30 per cent,' he said.
Savills' research and consultancy associate director Alan Cheong also expects transaction volumes to be tepid as buyers take a wait-and-see attitude. But developers may use more creative marketing strategies to keep sale prices on a per sq ft basis stable while offering buyers incentives through various rebates, he said.
esthert@sph.com.sg
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