80.4% of Aug developer sales still over $1,000 psf

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http://www.businesstimes.com.sg/sub/...04174,00.html?

Published September 16, 2010

80.4% of Aug developer sales still over $1,000 psf

More transactions at high end, shoebox units still popular

By KALPANA RASHIWALA


(SINGAPORE) An analysis of developers' monthly sales information released yesterday by the government showed that 80.4 per cent of the 1,248 private homes sold in August were priced above $1,000 per square foot (psf).

This is the second month running that the share of this price band has surpassed 80 per cent. In July, 84.7 per cent of the 1,549 homes sold by developers were above $1,000 psf, according to an analysis by Colliers International. Market watchers suggest this pattern is being caused by the popularity of small-format apartments as well as more transactions in the high-end segment.

Information released by the Urban Redevelopment Authority (URA) yesterday showed that developers sold a higher-than-expected 1,248 private homes (excluding executive condos) in August as buyers brushed aside taboos about the Hungry Ghosts Month in the face of strong market sentiment at the time.

The figure, however, was 19.4 per cent below the previous month's and takes developers' sales in the first eight months of this year to 11,190 units, following last year's strong sales of 14,688 units.

Most analysts expect sales to slow for the September-to-December period, on the back of the property market-cooling measures announced on Aug 30. However, with the strong sales already chalked up between January and August, the full-year tally could still come in at around 14,000 units, they say.

Colliers director for research and advisory Tay Huey Ying pointed to signs of confidence returning to the higher-end market, with the number of new units sold above $1,500 psf increasing 81 per cent month on month from 175 units in July to 317 in August.

The most expensive transaction last month was $3,434 psf for a unit at the Orchard View development at Angullia Park, followed by $3,159 psf at The Laurels on Cairnhill Road, and $3,133 psf at Tomlinson Heights, being developed by Hotel Properties Ltd on the former Beverly Mai site.

CBRE Research noted that a whole suite of projects with shoebox units was launched in August - including Centra Suites (62 units sold), Suites @ Topaz (41 units), Dorsett Residences (35 sales), Studios @ Tembeling (22 units) and Opal Suites (19 units), all with a median price of between $1,200 psf and $1,750 psf. In addition, the top two selling projects for August - The Greenwich in the Seletar Hills area (207 units sold at a median price of $1,095 psf) and Viva Vista on South Buona Road (139 units at a $1,509 psf median price) - have a substantial number of smallish units and set benchmark prices for their respective locations.

URA's statistics also revealed that 35 units in Dorsett Residences above Outram MRT Station were transacted in August at a median price of $1,749 psf - contrary to the project's marketing agent Knight Frank's earlier news release that all 68 apartments in the project were sold out at its preview on Sept 1. The firm yesterday clarified that it brokered the sale of 34 units for which options were issued on Aug 31, inclusive of 30 units sold to a Singapore-registered company. The balance of units in the project were sold on Sept 1.

Property consultants expect developer sales to be clipped in September following the cooling measures. PropNex predicts 700 to 850 units could be sold this month, followed by perhaps 500 to 800 units per month for the fourth quarter. Colliers is predicting average monthly sales of about 800 units per month for the last four months of this year. Most consultants reckon full-year sales are likely to be of the order of about 14,000 units.

The jury is still out on the extent of impact of the latest cooling measures on prices. Says DTZ SE Asia head of research Chua Chor Hoon: 'Whether developers are unsure, pessimistic or optimistic about the impact of the measures, if they choose to proceed with launches, they're unlikely to push for new benchmark pricing levels. They will either price the same as before or slightly lower to entice buyers.'

The Core Central Region accounted for only 12.4 per cent or 155 units of the 1,248 units sold in August with the Rest of Central Region and Outside Central Region each having roughly equal split at 546 and 547 units respectively.

Developers launched a total of 1,326 units in August, a tad lower than the 1,336 units for July. Market watchers note that the ratio of units sold to units launched eased from 1.16 in July to 0.94 in August.

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http://www.straitstimes.com/Money/St...ry_579099.html

Sep 16, 2010

Sale of new private homes fairly strong

But property experts expect volume to fall as cooling measures kick in

By Joyce Teo


NEW private homes sales stayed fairly robust in August, despite the month coinciding with the traditionally inauspicious Hungry Ghost Festival.

Some 1,248 units were sold, 19 per cent lower than the 1,549 in July but ahead of the 847 units sold in June.

And some 1,326 new homes were launched, compared with 1,336 units in July.

Colliers International's director for research and advisory, Ms Tay Huey Ying, said the 'surprisingly strong sales volume' reflected the strength of market confidence and optimism following Singapore's spectacular economic rebound.

The sales - which pre-dated the Government's announcement of market-cooling measures on Aug 30 - bring the total number of new homes bought in the first eight months of the year to 11,210 units.

Last month, National Development Minister Mah Bow Tan said calibrated steps were being taken, including tighter lending rules for those with mortgages looking to buy another property, to prevent the market from overheating.

Ms Tay suggested it would be in the interest of developers to launch projects early at current price levels, 'instead of at a later date when prices may come under pressure by the Government's cooling measures'.

For now, prices are still holding, with CBRE expecting to see a small 2-3 per cent rise in the third quarter.

But property experts are now expecting new home sales to slow to about 600-800 units per month for the rest of the year, as a result of the measures.

Jones Lang LaSalle's head of research for South-east Asia, Dr Chua Yang Liang, is predicting this month's sales to contract by 30-35 per cent from last month's levels as the new rules take effect. Sales of new private homes for the whole of this year may reach the lower end of the firm's earlier estimate of 13,000 to 14,000 units, he said, after near-record sales of 14,688 units last year.

Resale volume for all homes except executive condominiums will drop in the third quarter, he added.

Property experts noted that last month the new projects that sold well were priced relatively high, but had mostly small units to offer.

About 88 per cent of the 1,248 units sold last month had a median price of more than $1,000 per sq ft (psf), said property agency PropNex.

The month's top seller was The Greenwich in Seletar Road, which sold 207 units at a median price of $1,095 psf, while Viva Vista in South Buona Vista Road sold 139 units at a median price of $1,509 psf.

There was also The Scala in Serangoon, which moved 74 units at a median price of $1,138 psf; Waterfront Gold in Bedok Reservoir, which sold 65 units at a median price of $990 psf; and Centra Suites in Geylang, which sold out its 62 units at a median price of $1,201 psf.

The head of South-east Asia research at DTZ, Ms Chua Chor Hoon, said: 'Many of the units are small in size, reflecting the current penchant among buyers who are drawn to the affordable quantum of below $1 million.'

At the other end of the market, Savills Singapore noted that prices of high-end homes in the core central region had increased despite demand dipping from 277 units in July to 155 last month.

It pointed out that The Residences at W Singapore in Sentosa Cove launched a further 172 units last month, but none were sold.

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