Results 1 to 4 of 4

Thread: Developers' home sales up 25.4% in March

  1. #1
    mr funny is offline Any complaints please PM me
    Join Date
    May 2006
    Posts
    8,129

    Default Developers' home sales up 25.4% in March

    http://www.businesstimes.com.sg/sub/...83940,00.html?

    Published April 16, 2011

    Developers' home sales up 25.4% in March

    Pace of demand, land sales point to oversupply risk down the road

    By KALPANA RASHIWALA


    DESPITE a month-on-month spike in developers' sales in March, sales of private homes in both the primary and secondary markets eased in the first quarter, according to latest figures from Urban Redevelopment Authority.

    Official figures yesterday on primary market activity show that developers' sales of private homes excluding executive condos (ECs) rose 25.4 per cent month on month to 1,386 units in March, buoyed by higher sales in Core Central Region and Rest of Central Region, as well as a bigger proportion of transactions in higher price bands.

    However, the 3,595 units which developers sold in the first quarter (excluding units sold in the first two months of this year which have been returned to developers) were 15.2 per cent below the 4,241 units sold in the preceding quarter and 17.9 per cent lower than the 4,380 units they sold in Q1 2010.

    In addition, CB Richard Ellis' analysis of URA Realis caveats data reflects a slowdown in secondary market sales in Q1. The number of private homes transacted in the resale market, which involves projects that have received Certificate of Statutory Completion (CSC), fell to 3,168, down 24 per cent from the previous quarter.

    Subsales - secondary market deals involving projects that have yet to receive CSC and which are often seen as a proxy for speculative activity - also slipped, down 25.5 per cent quarter on quarter to 550 units.

    Year on year, the Q1 resales volume was down about 36 per cent and subsales fell around 45 per cent. However, analysts say that the final resale and subsale numbers for Q1 may be higher as more caveats are lodged.

    They also note that despite the drop in both primary market and resale deals in Q1, the figures remain above the 3,000-unit mark, keeping prices firm.

    'The government's cooling measures are taking effect gradually,' said DTZ head of consulting & research (SE Asia) Ong Choon Fah. However, she warns that given the substantial amount of land that developers are buying at state tenders, the speed at which they are launching projects on them, and pace of demand from buyers, 'there's potential risk of an oversupply when all these projects are completed in a few years' - if a substantial proportion of these homes are not being bought for owner occupation.

    More immediately, Mrs Ong cautions that further policy measures to address asset inflation in China and Hong Kong may have a knock-on effect for Singapore if funds are diverted to the island.

    CBRE executive director Joseph Tan attributes the drop in Q1 developer sales to speculators being weeded out by the cooling measures. 'The current volume represents genuine demand from occupiers and owners.'

    URA figures yesterday show that including ECs (a hybrid of public and private housing), developers' sales totalled 1,543 units in March, 25.2 per cent more than February's 1,232 units. The 1,246 units (including ECs) they launched in March were down 27.1 per cent from 1,710 units in February.

    Colliers International consultant (research and advisory) Tay Huey Ying noted that developers' monthly sales (excluding ECs) have stayed above the 1,000-unit mark since January 2010 with the exception of June and September 2010 - despite several rounds of cooling measures.

    'The fact that this has been accompanied by six consecutive quarters of moderation in q-o-q growth in URA's private residential price index may suggest that the 1,000-1,200 unit a month new sales level may represent a healthy state of the residential market and not one of over-exuberance. This is supported by Singapore's enlarged population and draw as an investment destination and the appeal of property as a hedge against inflation,' said Ms Tay.

    CBRE expects developers to sell about 3,000-3,500 units in the second quarter, with prices remaining stable.

    Last year, developers sold a record 16,292 private homes (excluding ECs), up 10.9 per cent from the preceding year.

    URA's flash estimate earlier this month reflected a 2.1 per cent q-o-q rise in the overall private home price index, which climbed 17.6 per cent for the whole of 2010.

    Colliers noted that the sales volume (excluding ECs) in Core Central Region - which includes prime districts 9, 10 and 11, the financial district and Sentosa Cove - climbed 85.2 per cent month on month to 263 units in March, while the figure for Rest of Central Region (which covers locations such as Bukit Merah, Queenstown, Geylang, Toa Payoh and Katong) posted a 119.6 per cent m-o-m sales increase to 492 units. However, the volume of mass-market homes in Outside Central Region recorded a 14.6 per cent m-o-m drop to 631 units. Further evidence of interest returning to pricier properties was seen in a jump in the proportion of new sales at above $2,000 psf from 8 per cent in February to 15 per cent in March.

    H20 Residences in Sengkang was the top-selling project by a developer in Q1, with 255 units transacted at a median price of $943 psf. Other popular projects included Questa@Dunman (100 units at $1,319 psf), Skysuites@Anson (76 units at $2,109 psf) and Skysuites 17 in the Balestier area (71 units at $1,463 psf). A Scotts Square unit sold for $4,334 psf while a Boulevard Vue unit fetched $4,308 psf.

    Meanwhile, Tripartite Developers is said to have yesterday sold about 100 units on the first day of preview of The Hedges in Upper Changi. The average price is said to be around $850-860 psf.

  2. #2
    mr funny is offline Any complaints please PM me
    Join Date
    May 2006
    Posts
    8,129

    Default


  3. #3
    Join Date
    Jun 2010
    Posts
    229

    Default

    So what if sales increased.

    Generally I dun undstd why media like to track and monitor sales on monthly basis.

    Ultimately people buy doesnt mean they can afford to sustain the loan when the proj is top. Similarly when sales lower doesn't mean mkt is bad. There are many factors such as timing of the launches and type of proj consumers are targeting or there could be significant events took place that disallowed people from exercising.


    Quote Originally Posted by mr funny
    http://www.businesstimes.com.sg/sub/...83940,00.html?

    Published April 16, 2011

    Developers' home sales up 25.4% in March

    Pace of demand, land sales point to oversupply risk down the road

    By KALPANA RASHIWALA


    DESPITE a month-on-month spike in developers' sales in March, sales of private homes in both the primary and secondary markets eased in the first quarter, according to latest figures from Urban Redevelopment Authority.

    Official figures yesterday on primary market activity show that developers' sales of private homes excluding executive condos (ECs) rose 25.4 per cent month on month to 1,386 units in March, buoyed by higher sales in Core Central Region and Rest of Central Region, as well as a bigger proportion of transactions in higher price bands.

    However, the 3,595 units which developers sold in the first quarter (excluding units sold in the first two months of this year which have been returned to developers) were 15.2 per cent below the 4,241 units sold in the preceding quarter and 17.9 per cent lower than the 4,380 units they sold in Q1 2010.

    In addition, CB Richard Ellis' analysis of URA Realis caveats data reflects a slowdown in secondary market sales in Q1. The number of private homes transacted in the resale market, which involves projects that have received Certificate of Statutory Completion (CSC), fell to 3,168, down 24 per cent from the previous quarter.

    Subsales - secondary market deals involving projects that have yet to receive CSC and which are often seen as a proxy for speculative activity - also slipped, down 25.5 per cent quarter on quarter to 550 units.

    Year on year, the Q1 resales volume was down about 36 per cent and subsales fell around 45 per cent. However, analysts say that the final resale and subsale numbers for Q1 may be higher as more caveats are lodged.

    They also note that despite the drop in both primary market and resale deals in Q1, the figures remain above the 3,000-unit mark, keeping prices firm.

    'The government's cooling measures are taking effect gradually,' said DTZ head of consulting & research (SE Asia) Ong Choon Fah. However, she warns that given the substantial amount of land that developers are buying at state tenders, the speed at which they are launching projects on them, and pace of demand from buyers, 'there's potential risk of an oversupply when all these projects are completed in a few years' - if a substantial proportion of these homes are not being bought for owner occupation.

    More immediately, Mrs Ong cautions that further policy measures to address asset inflation in China and Hong Kong may have a knock-on effect for Singapore if funds are diverted to the island.

    CBRE executive director Joseph Tan attributes the drop in Q1 developer sales to speculators being weeded out by the cooling measures. 'The current volume represents genuine demand from occupiers and owners.'

    URA figures yesterday show that including ECs (a hybrid of public and private housing), developers' sales totalled 1,543 units in March, 25.2 per cent more than February's 1,232 units. The 1,246 units (including ECs) they launched in March were down 27.1 per cent from 1,710 units in February.

    Colliers International consultant (research and advisory) Tay Huey Ying noted that developers' monthly sales (excluding ECs) have stayed above the 1,000-unit mark since January 2010 with the exception of June and September 2010 - despite several rounds of cooling measures.

    'The fact that this has been accompanied by six consecutive quarters of moderation in q-o-q growth in URA's private residential price index may suggest that the 1,000-1,200 unit a month new sales level may represent a healthy state of the residential market and not one of over-exuberance. This is supported by Singapore's enlarged population and draw as an investment destination and the appeal of property as a hedge against inflation,' said Ms Tay.

    CBRE expects developers to sell about 3,000-3,500 units in the second quarter, with prices remaining stable.

    Last year, developers sold a record 16,292 private homes (excluding ECs), up 10.9 per cent from the preceding year.

    URA's flash estimate earlier this month reflected a 2.1 per cent q-o-q rise in the overall private home price index, which climbed 17.6 per cent for the whole of 2010.

    Colliers noted that the sales volume (excluding ECs) in Core Central Region - which includes prime districts 9, 10 and 11, the financial district and Sentosa Cove - climbed 85.2 per cent month on month to 263 units in March, while the figure for Rest of Central Region (which covers locations such as Bukit Merah, Queenstown, Geylang, Toa Payoh and Katong) posted a 119.6 per cent m-o-m sales increase to 492 units. However, the volume of mass-market homes in Outside Central Region recorded a 14.6 per cent m-o-m drop to 631 units. Further evidence of interest returning to pricier properties was seen in a jump in the proportion of new sales at above $2,000 psf from 8 per cent in February to 15 per cent in March.

    H20 Residences in Sengkang was the top-selling project by a developer in Q1, with 255 units transacted at a median price of $943 psf. Other popular projects included Questa@Dunman (100 units at $1,319 psf), Skysuites@Anson (76 units at $2,109 psf) and Skysuites 17 in the Balestier area (71 units at $1,463 psf). A Scotts Square unit sold for $4,334 psf while a Boulevard Vue unit fetched $4,308 psf.

    Meanwhile, Tripartite Developers is said to have yesterday sold about 100 units on the first day of preview of The Hedges in Upper Changi. The average price is said to be around $850-860 psf.

  4. #4
    mr funny is offline Any complaints please PM me
    Join Date
    May 2006
    Posts
    8,129

    Default

    http://www.straitstimes.com/PrimeNew...ry_657372.html

    Apr 16, 2011

    Sales of new private homes up 25%

    Surprisingly robust figures for last month buck falling sales trend

    By Esther Teo, Property Reporter


    INVESTORS and HDB upgraders were out in force last month to drive sales of new private homes up 25 per cent to a surprisingly high 1,386 units.

    Add in executive condominium (EC) sales, and the total is 1,543 units.

    The March figures are the highest this year and buck the trend after three consecutive months of falling sales - but they are still below the level of five months of last year.

    There were 3,701 new homes sold in the first three months of this year, 13 per cent down from the 4,241 shifted in the fourth quarter of last year.

    It is also the poorest quarter for new home sales since the fourth quarter of 2009, said Dr Chua Yang Liang, the head of research at Jones Lang LaSalle South-east Asia.

    The decline is possibly due to the weeding out of speculators as the cooling measures take effect, experts say.

    Suburban homes were the most popular, comprising 46 per cent of the total sales last month, indicating sustained demand from HDB upgraders.

    'The high (March) figures are surprising... Usually, months with greater sales are the result of many larger projects launching and selling high numbers of units,' PropNex corporate communications manager Adam Tan noted.

    Experts add that last month's stronger showing is partly due to the rebound after the usual Chinese New Year slowdown in February.

    But it also suggests that home buyers might have shaken off the Jan 13 cooling measures and are showing renewed interest in mid- and high-end markets.

    Colliers International's analysis of the Urban Redevelopment Authority data found that city centre unit sales jumped 85 per cent, while sales on the fringe rocketed 120 per cent over February. But suburban homes sales fell 15 per cent.

    Sales numbers have also been boosted by investors snapping up shoebox units - those of less than 500 sq ft.

    New projects such as Devonshire Residences and SkySuites 17 have a significant number of such homes and they have seen healthy sales, said Mr Ong Teck Hui, Credo Real Estate's head of research and consultancy.

    Buying interest is also broad-based across the island, with only two projects - H2O Residences and Questa@Dunman - managing sales of 100 units or more.

    Last month's robust numbers have again raised the prospect of possibly more cooling measures, but most experts say that it is still too early to tell.

    SLP International research head Nicholas Mak said that with prices moving up only marginally, another round of measures would not be justifiable at this time. Flash estimates showed that prices rose 2.1 per cent in the first quarter and that price rises were moderating.

    He added that although HDB upgraders still make up a significant proportion of new sales, the measures have helped dampen demand. The proportion of new suburban homes sold fell from 67 per cent in February to 46 per cent last month.

    Experts expect sales this month to hold steady, supported by the launch of more projects and an unexpectedly strong economic growth of 8.5 per cent in the first quarter.

    Ms Tay Huey Ying, a research and advisory consultant at Colliers, added that Singapore's enlarged population and attractiveness as an investment destination could mean that monthly sales of 1,000 to 1,200 new units have become the norm.

    But Mr Joseph Tan, CB Richard Ellis executive director of residential, noted that the healthy residential market in the first quarter could have fuelled developers' appetite for sites, with some land near MRT stations fetching high prices.

    'With the growth forecast of 4 to 6 per cent for the economy remaining on track, we expect the take-up of new homes in the second quarter to be around 3,000 to 3,500 units and home prices to remain stable,' he said.

    [email protected]

Similar Threads

  1. Two successful launches help revive new-home sales in March
    By reporter2 in forum Singapore Private Condominium Property Discussion and News
    Replies: 1
    -: 17-04-16, 00:25
  2. Pickup in new private home sales in March
    By reporter2 in forum Singapore Private Condominium Property Discussion and News
    Replies: 1
    -: 23-04-15, 23:52
  3. Singapore new home sales dip slightly in March from Feb
    By reporter2 in forum Singapore Private Condominium Property Discussion and News
    Replies: 0
    -: 21-04-12, 03:30
  4. Singapore new home sales dip slightly in March from Feb
    By reporter2 in forum Singapore Private Condominium Property Discussion and News
    Replies: 0
    -: 20-04-12, 02:48
  5. Private Home Sales Leapt 80% In March From February
    By Teana in forum Singapore Private Condominium Property Discussion and News
    Replies: 8
    -: 17-04-08, 09:58

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •