Sales of new private homes (excluding ECs) rose 29% in Apr to a 5-mth high as developers pushed out more projects to ride on the buying momentum amid risk of further policy changes from the govt. Developers sold 1,788 units last mth - the highest mthly volume since 1,915 units were sold in Nov 2010, according to data from the URA. In Mar 2011, 1,386 new private homes were sold. The number of homes launched by developers climbed by 64% to 2,049 units. 'It is the strongest performing mth since Nov 2010, when 2,331 units were launched and 1,915 units sold following a short lull in Sept and Oct after the cooling measures of Aug 2010.
At that time, potential buyers stayed away from the market for a couple of months, only to return optimistically in Nov, pushing up that month's figures,' said Credo Real Estate exec director Ong Teck Hui. 'The question is whether we are seeing a repeat of Nov's phenomenon. After the measures in Jan 2011, we saw a moderation in Feb and Mar and now there is a resurgence in Apr, indicating that more buyers are back in the market.
A sustained uptrend in May will confirm that the market is getting buoyant again.' The govt imposed a seller's stamp duty of up to 16% for private homes in Jan this year, and further cut the LTV ratio for buyers with existing mortgages to 60%. Much of the buying momentum in Apr came from the OCR, where suburban condos are located. URA's data showed that 1,010 homes were sold in the OCR in Apr, up from 631 homes in Mar. The preference for cheaper suburban homes could also be seen in a price band analysis by Colliers International. Some 779 units went for $1,000 psf or less in Apr, which amounted to 44% of all units sold in the mth.
In comparison, just 391 homes were sold for $1,000 psf and under in Mar, making up 28% of all units sold. 2 large projects in the OCR region, Eight Courtyards (from FCL and FEO) and Hedges Park (from Hong Leong Group, City Developments and TID) accounted for 32% of all units sold in Apr.
At Eight Courtyards, 340 units were sold at a median price of $789 psf, while at Hedges Park, 224 units were sold at a median price of $889 psf. At Wing Tai Holdings' 496-unit Foresque Residences at Upper Bukit Timah, around 100 units have been sold at about $1,100-1,300 psf, sources said. Other developments that saw steady sales recently include Hoi Hup Realty's 141-unit The Forester @ Mount Faber, where around 50% of units were sold at an average price of about $2,000 psf; and the 69-unit 10 Shelford from Adam Properties, which saw a take-up of about 60% of units at about $1,800-2,000 psf. Both developments offer a large proportion of small units. Measures in the HDB sector will have an indirect impact on the demand for mass, and to a certain extent, mid market properties, said Citigroup economist Kit Wei Zheng. For now, buyers are likely to adopt a 'wait-and-see' approach, said Colliers' director of research & advisory Chia Siew Chuin.
'They are likely to be more selective and price-sensitive. However, affordably priced projects with good attributes are still expected to enjoy healthy sales.'
- The Business Times
- Also quoted in The Straits Times, "Private home sales surge 29%"
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