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26-07-12, 00:18
http://www.straitstimes.com/Money/Story/STIStory_823381.html
Buyers back out of 105 private home deals
Returns in June make up 5.2% of over 2,000 units sold, fewer than in May
Published on Jul 18, 2012
By Amanda Tan
PRIVATE home buyers returned 105 units to developers last month - fewer than in May but in line with levels seen in recent months.
The units, which were likely bought in May, came from projects like Sky Habitat, Seahill and executive condominium (EC) Twin Waterfalls.
The returns comprised about 5.2 per cent of the more than 2,000 units sold - including ECs - that month, according to consultancy Square Foot Research.
There were 150 units returned in May, or 5.7per cent of the more than 2,600 non-landed homes sold in April, ECs included.
Square Foot director Ooi Yi Tung said the firm's data shows the monthly return rates have generally stayed below 6 per cent since 2009, although there have been aberrations.
One came in January when returns hit 9 per cent, probably because the property cooling measures imposed in December gave some buyers second thoughts.
Home owners typically have three weeks to back out after signing an option, but often pay a hefty price for changing their minds.
If they choose not to exercise their options, they forfeit 1.25 per cent of the apartment's price. That works out to $12,500 for a $1million unit.
PropNex chief executive Mohamed Ismail said the percentage of returned units is 'still relatively small'.
'This happens month after month because buyers sometimes feel buyer's remorse,' he said.
This could arise after the 'showflat hype' dies down and people take a second, critical look at their purchases.
'These days, developers spend a huge amount to create the environment and mood (in showflats)... so it's not surprising for people to make a decision there and later feel it was too quick and then drop the idea,' Mr Ismail added.
Buyers also back out because their financing applications do not get approved.
The EC developments Twin Waterfalls and The Tampines Trilliant were among the top five projects with the most cancelled units last month.
Ten buyers backed out of Twin Waterfalls, while seven gave up options on The Tampines Trilliant.
Private condo Seahill had eight returns, while Sky Habitat in Bishan had six returns yet it sold only eight units in May, experts noted.
Businessman Henry Na, who recently bought a unit in Punggol, noted: 'It's probably speculators who return the units following bad news about the euro zone, or people who have bought above their budget.
'People who don't overstretch themselves, like myself, will not return units.'
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Buyers back out of 105 private home deals
Returns in June make up 5.2% of over 2,000 units sold, fewer than in May
Published on Jul 18, 2012
By Amanda Tan
PRIVATE home buyers returned 105 units to developers last month - fewer than in May but in line with levels seen in recent months.
The units, which were likely bought in May, came from projects like Sky Habitat, Seahill and executive condominium (EC) Twin Waterfalls.
The returns comprised about 5.2 per cent of the more than 2,000 units sold - including ECs - that month, according to consultancy Square Foot Research.
There were 150 units returned in May, or 5.7per cent of the more than 2,600 non-landed homes sold in April, ECs included.
Square Foot director Ooi Yi Tung said the firm's data shows the monthly return rates have generally stayed below 6 per cent since 2009, although there have been aberrations.
One came in January when returns hit 9 per cent, probably because the property cooling measures imposed in December gave some buyers second thoughts.
Home owners typically have three weeks to back out after signing an option, but often pay a hefty price for changing their minds.
If they choose not to exercise their options, they forfeit 1.25 per cent of the apartment's price. That works out to $12,500 for a $1million unit.
PropNex chief executive Mohamed Ismail said the percentage of returned units is 'still relatively small'.
'This happens month after month because buyers sometimes feel buyer's remorse,' he said.
This could arise after the 'showflat hype' dies down and people take a second, critical look at their purchases.
'These days, developers spend a huge amount to create the environment and mood (in showflats)... so it's not surprising for people to make a decision there and later feel it was too quick and then drop the idea,' Mr Ismail added.
Buyers also back out because their financing applications do not get approved.
The EC developments Twin Waterfalls and The Tampines Trilliant were among the top five projects with the most cancelled units last month.
Ten buyers backed out of Twin Waterfalls, while seven gave up options on The Tampines Trilliant.
Private condo Seahill had eight returns, while Sky Habitat in Bishan had six returns yet it sold only eight units in May, experts noted.
Businessman Henry Na, who recently bought a unit in Punggol, noted: 'It's probably speculators who return the units following bad news about the euro zone, or people who have bought above their budget.
'People who don't overstretch themselves, like myself, will not return units.'
[email protected]