http://www.straitstimes.com/PrimeNew...ry_669306.html
May 17, 2011
Private home sales surge 29%
Strong interest in mass market homes drives growth: Analysts
By Esther Teo, Property Reporter
PRIVATE home sales had a strong run last month, with total sales rising 29 per cent from March to a five-month high of 1,788 units.
Analysts say strong interest in mass market homes, especially two large suburban projects, was the key driver in the higher than expected sales total.
The latest robust figures come despite tough market cooling measures in January, and three earlier rounds of measures.
Experts say prices are likely to rise in tandem with the boost in sales, although at a gradual pace.
Fresh cooling measures are now a 'strong possibility' given buying momentum, Colliers director of research and advisory Chia Siew Chuin said yesterday.
Still, while the Government should track the market closely, it should not impose a fifth set of measures unless buying exuberance is sustained, coupled with a faster pace of price rises, she said.
Including sales of executive condos (ECs), 1,901 units were sold in April. March was significantly lower at 1,543 including ECs and 1,386 units without.
Experts say April's figures were mainly driven by launches. Two large suburban projects - Eight Courtyards in Yishun and Hedges Park Condominium in Upper Changi - made up 32 per cent of sales.
Last month alone, 2,049 new homes were launched, the most since the start of the year.
Experts add suburban sales, which made up 56 per cent of total sales volume last month, also indicate sustained interest in private homes by HDB upgraders.
Savills' senior manager of research and consultancy, Ms Christine Sun, however, noted that most new launches saw a less than 60 per cent take-up rate of launched units. 'This may imply that the healthy demand may not be representative of the entire market's sales condition,' she said.
Last month's figures are the highest since 1,915 homes found buyers in November, according to data on the Urban Redevelopment Authority's website.
Experts also say prices across all segments have firmed. Ms Sun said median launch prices of some recent projects seemed higher than others launched in the same area a few months back.
If the strong buying momentum continues, developers could be encouraged to gradually edge prices higher, they said.
Returning interest in city centre homes from local and foreign investors is also evident with 15 units sold at $3,000 psf and above last month - the highest since December, Savills said. The most expensive home sold last month was at The Orchard Residences for $4,799 psf.
Analysts say this interest might be due to Singapore's stable economic and political landscape drawing investors, given the turmoil in the Arab world and Japan's nuclear disaster.
Experts, however, do not expects last month's strong sales figures to continue.
Cushman & Wakefield senior manager of Asia-Pacific research Ong Kah Seng said April's sales followed a period of subdued launches and limited choice.
CB Richard Ellis Research executive director Li Hiaw Ho said the market is aware that the Government is reviewing the income ceiling for public housing. This has led to apprehension about the impact on the mass market.
Top selling projects include Eight Courtyards with 340 units sold at a median price of $789 per sq ft (psf); Hedges Park Condo, 224 homes, at $889 psf; and Centra Heights, 90 units at $1,624 psf.
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