Private home buyers returned 150 units to developers last
month at projects such as Sky Habitat, The Tampines Trilliant and
Hillsta - the highest number in at least five years. These units, bought
in April, made up 5.7% of the more than 2,600 non-landed homes,
including ECs, sold that month, analysis by property research firm
Square Foot Research shows. Despite the high absolute figure for
returns, experts say that in percentage terms, the rate is in line with
last year's.
They add that the spike in absolute numbers is largely due
to April's robust sales which had buyers snapping up the most number of
units in almost three years. Return rates are defined as returned units
as a percentage of total non-landed sales in the previous month. These
rates have remained largely below 6%, the property research firm's data
shows. Home buyers sign an option typically lasting three weeks and can
back out during this period. But those choosing not to exercise their
options forfeit 1.25% of the price. This works out to $12,500 for a $1
million condo. Shoebox units, smaller than 50 sq m each, formed about
20% of the 2,496 non-EC units sold last month.
While the 150 returned
units represent a five-year high in terms of absolute numbers, the
percentage return rate was higher in the earlier part of the year. For
instance, while 52 units were returned in January, that translated to a
return rate of 9 per cent. This may have been caused by the tough round
of cooling measures unveiled last December. Last month, 15 units were
returned at Hillsta, 11 units Trilliant and 10 at Sky Habitat. In April,
buyers returned 17 units at Riversound Residence and 9 each at Ripple
Bay and Twin Waterfalls. Dennis Wee Group's senior manager of research
and consultancy Lee Sze Teck said buyers might return units if they find
more attractive options elsewhere or have simply changed their minds.
Buying sentiment is still healthy and positive, he noted, and if the
local economy is doing well and jobs are still secure, then despite the
shadow of the euro zone crisis, buyers might still keep their purchased
units.
