New private home sales down by half

[Musicwhiz]

The Straits Times
Published on May 16, 2013
New private home sales down by half
Drop in April due to 'fewer launches, buyers holding out for better deals.

By Melissa Tan

NEW home sales in Singapore halved from a record tally of 2,793 units in March to just 1,375 last month as developers turned cautious on launches and home seekers held out for better buys.

Consultants believe March's surge in sales was likely a one-off spike owing to pent-up demand after the market paused to digest January's tough round of cooling measures.

Projects launched last month that sold well included Sant Ritz in Potong Pasir and Jade Residences in Upper Serangoon, according to data released yesterday by the Urban Redevelopment Authority (URA).

The 214-unit Sant Ritz sold 104 units at a median $1,494 per sq ft (psf) last month while Jade Residences sold 79 out of its 171 units at a median $1,592 psf.

Businessman Noel Chia, 35, who bought a 656 sq ft two-bedder in Sant Ritz last month for nearly $1.1 million, said he was drawn to the project's investment potential, design and location.

But the top seller last month was the 868-unit Bartley Ridge at Mount Vernon Road, launched in March. It moved 154 units at a median $1,278 psf, bringing its cumulative sales to 486 units.

Buyers turned to projects launched in March partly because the pace of new launches slowed dramatically last month, consultants said. Only 1,158 new homes went on the market last month, compared with the 3,489 new units put up for sale in March.

"Developers are not in a hurry to launch their projects as currently there is still some uncertainty lingering in the private residential property market," said R'ST Research director Ong Kah Seng.

Consultants said another factor dampening new home sales was that home buyers were waiting for prices to dip.

"Buyers are expecting developers to price their projects reasonably due to the cooling measures and increased supply... (and) are expected to be choosier as they try to find the best value-for-money investment," said ERA Realty key executive officer Eugene Lim.

CBRE executive director of residential Joseph Tan said it appears that the psychological price barrier stands at $900 to $1,600 psf, depending on location. "Projects launched above that level saw some resistance."

Some projects, such as Bartley Ridge and D'Nest, were sold at a lower median price psf last month than in March, said Ms Alice Tan, Knight Frank's head of consultancy and research. She also suggested buyers could be waiting on the sidelines for upcoming launches on more desirable sites.

Buyers may also be taking their time to commit since it is unlikely that there will be cooling measures soon. Last month, Deputy Prime Minister Tharman Shanmugaratnam noted that although property prices remained high, they were moving in the right direction, adding the Government had no plans for another round of cooling measures for now.

Including executive condominiums, a total of 1,547 private homes were sold last month, URA data showed.

Upcoming launches expected this month include the 142-unit KAP Residences at King Albert Park, the 366-unit Corals at Keppel Bay near Harbourfront MRT, the 64-unit Liv on Sophia near Dhoby Ghaut MRT station and the 380-unit Stratum in Pasir Ris.

Stratum will be launched this Saturday with units priced at $900 psf on average.

Other projects such as the 56-unit Cosmoloft in Balestier and 54-unit The Siena at Farrer Road were launched earlier this month. Colliers International research and advisory head Chia Siew Chuin expects new home sales this month to range from 1,300 to 1,600 units.

melissat@sph.com.sg

[mulyc]

Is this the beginning of the slide downhill for property prices?

[NTL]

There is still too much money out there. If the price drop a little, all these people will come out and grab another 1 or 2 units. It just like COE, when drop a bit, all rush out to buy again. Just like gold, when drop a bit, all rush out to but too.

[BlueKelah]

There is still too much money out there. If the price drop a little, all these people will come out and grab another 1 or 2 units. It just like COE, when drop a bit, all rush out to buy again. Just like gold, when drop a bit, all rush out to but too.

that is quite true, unless china property bubble pops and world markets crash a bit there will be cashed up individuals buying up prop.'

[Bibi]

U need interest rates to up to 3-5% or an infectious virus killing lots of pp here. If not all bets are off that property will drop drastic.

[mulyc]

I think you just need another few more months when thousands of new homes TOP and Singaporeans realize there're hardly anymore buyers/renters since there are less foreign talent and new HDBs are so cheap. The only market left will be local first time buyers. And even then our marriage rates are dropping.

The PAP has a very tough 2016 Elections to contend with. They know we need to import more foreigners to replace our aging population, but the popular vote and sentiment is very much against it. So it's a matter of finding that right balance, else it will risk losing further ground.

[Bibi]

I thought supply is coming in fast but the number of foreigners entering Spore is at a slower rate but still quite high of ~10,000 per month?

[cfa]

Gov want to have 25K new citizens each year, so the demand for housing will always be there.

[NTL]

Gov want to have 25K new citizens each year, so the demand for housing will always be there.

25000 new citizen, but 60000 new homes. How that equate?

[WolfT]

25k new SC does not mean 25k new house needed. Many of them are families, maybe 2-4 pax per household.
Many of them are PR convert to SC.Meaning to say they already have housing covered.
How many left of these new households are very rich that they can afford condos?
Think people think! Don't keep ripping off statistics and take face value number!