http://www.businesstimes.com.sg/sub/...43501,00.html?

Published June 16, 2011

Drop in home sales due to curbs: PropNex

CEO says cooling measures affect buyer confidence

By LESTER HIO


SALES of private homes have dipped almost 4 per cent in May, down to 1,825 units, according to a PropNex release yesterday.

Excluding the sales of executive condominiums, the drop is more severe - 12 per cent to 1,575.

According to PropNex CEO Mohamed Ismail, the slight decline of May sales can be attributed to the cooling measures announced in January this year, by impacting 'buyer confidence'.

The top selling projects in May all came from the Outside Central Region. Four projects sold over 100 units: Terrase with 184 units at a median of $994 per square foot, Belysa with 162 units at $691 psf, Foresque Residences with 141 units at $1,108 psf, and Eight Courtyards with 137 units at $806 psf.

Mr Ismail says that these four projects, which totalled 624 units and contributed to 34 per cent of total units sold, were instrumental in the robust sales figure of May.

A more noteworthy point was that 'close to 60 per cent of all the units sold were in the mass market, or under $1,200 psf', said Mr Ismail.

The affordable price of the four best-selling projects in May facilitated the relatively healthy volume of transactions.

'The strong showing in the mass market indicates the sustained interest in private property by HDB upgraders,' Mr Ismail said.

June's sales are expected to hold steady, with over 1,500 units sold, given that investor confidence and buying interest will be upheld after the hubbub of the General Election and return to power of the ruling party.

Says Mr Ismail: 'The fact that developers are expected to launch more projects in the coming months and the economic growth is at an unexpectedly strong 8.5 per cent for 1Q11, the volume of sales should continue to maintain levels above 1,500 units per month for the next few months.'

However, he cautions that this forecast is not withstanding further cooling measures by the government, and any unforeseen disaster or economic downturn.