CNY cheer for condo launches

[Musicwhiz]

Note the words "throng" and "snap up". Perhaps Bibi was right - Singaporeans really ARE cash-rich!

The Straits Times
Jan 26, 2012
CNY cheer for condo launches
Buyers throng showflats, snap up 224 units at Watertown over the weekend

By Esther Teo

THE notion that buyers avoid the property market during the Chinese New Year was shot down in flames over the weekend when 224 homes were sold at Watertown in Punggol Central.

Other projects also held open days over the festive weekend, with many willing buyers heading to showflats.

The so-called seasonal effect - namely that sales slow during the December school holidays, the Hungry Ghost Festival and Chinese New Year - has long dampened real estate activity.

But things have been changing in recent years.

Local home-seekers are more willing to buy all year round while there is also an increasing share of foreigners in the market who might be less superstitious.

Developers keen to shift property in what could be a slow year also seem happy to take their chances.

It added up to a bumper weekend at the 992-unit mixed-development project - a joint venture between Far East Organization, Frasers Centrepoint and Japanese firm Sekisui House.

The project has now moved more than 550 units since last week's preview, with prices ranging from $980 to $1,500 per sq ft (psf).

Far East also opened 15 other showflats throughout the weekend, including The Hillier in Upper Bukit Timah, with about 4,900 visitors passing through.

The privately held developer had launched the 748-unit euHabitat in Jalan Eunos during the Hungry Ghost Festival last year.

Mr Chia Boon Kuah, Far East's chief operating officer of property sales, said changing lifestyles and interests, coupled with smaller family units, mean many people found themselves with more free time during the Chinese New Year holidays.

'One of the activities that occupy their time would be to get up to speed on the latest property launches by visiting show galleries that are open during this period,' he added.

'Moreover, inbound tourist numbers have also been optimistic. This makes it a good opportunity for us to showcase our residential products to the regional community and to better serve this market.'

Far East even threw in a special festive treat in the form of an additional 1 per cent discount during the eve and the first three days of the New Year at all its projects, except Watertown, subject to certain conditions.

Far East also said it sold 21 units from its other projects such as The Hillier, The Greenwich, The Sound, Woodhaven and The Shore Residences.

UOL Group's Archipelago in Bedok Reservoir and City Developments' executive condo project The Rainforest in Chua Chu Kang also opened on at least one of the two New Year public holidays.

Mr Tan Kok Keong, OrangeTee's head of research and consultancy, said developers are less particular about when launches are staged, relying more on feedback from agents about market sentiment.

'It's also project-dependent, whether a project does well or not during a traditionally slower period. If your project is not well located, it might not do as well,' Mr Tan added.

Mr Alan Cheong, director of research and consultancy at Savills Singapore, said new home sales have held firm over the past two years as buying momentum from genuine demand is still strong.

In 2010, there were 1,202 homes sold in the Chinese New Year month of February, 1,259 new private homes sold in August - the month of the inauspicious Hungry Ghost Festival - and 1,332 in December. This was close to the average of 1,358 units per month for the year.

esthert@sph.com.sg

[kazukirai]

Note the words "throng" and "snap up". Perhaps Bibi was right - Singaporeans really ARE cash-rich!

I think Bibi is right on this count but I think it's just building up so that when things fall, they fall hard.

ASBD was targeted at Foreign Demand so no surprises that the take up rate is still high when there are plenty of locals cash rich enough for the downpayment and having jobs to pay back the monthly mortgage (which is easily serviceable due to low interest rates)

Will be looking at one or more of the following conditions to be met before property prices start to come down:
1) Interest Rates move higher.
2) Economy slows leading to retrenchments and layoffs.

A combination of the two will just mean that it all comes down harder and faster. Also, the longer bad times are, be sure that things will reach a point where they spiral down quickly. After all, it takes much longer to actually sell a property than say equities but to put it up for sale takes relatively little time.

Plus there is that teeny thing about relatively huge amount of residential property coming onstream in the not too distant future (~20K from Listed developers' unsold units and landbanks which I read from a Kim Eng report; and about 40-45K of BTOs sold last year and this) bugging me.

Meanwhile, home prices could run higher still. And if the authorities still see that as a problem. Your guess is as good as mine as to which segment of property buyers they'll attempt to curb demand from next. So, I'm not sure whether that Margin of Safety, either as a buyer or investor, is there as far as property is concerned.

On the plus side, there isn't rampant speculation as there was with DPS and what-nots. Usually, when you have too many people playing with monies they can't afford, then it's a sure sign of trouble.

[pianist]

just to share my neighbor next door last week bought a 2-storey landed house in hougang for S$2+ million with no down-payment, but in full amount using cash...singaporeans are indeed very cash rich