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New home sales slide 15% in Oct

September's high figure an anomaly, say analysts

Published on Nov 16, 2011

By Cheryl Lim


THE number of new private homes sold last month fell to 1,387, down 15 per cent from the 1,631 homes sold in September.

Despite the slide, analysts say last month's figures still point towards healthy, stable demand.

When executive condominiums (ECs), a hybrid of private and public housing, are included, the tally for last month is 1,638 homes - 20 per cent fewer than September's 2,064.

The figures were released yesterday by the Urban Redevelopment Authority.

Analysts say September's unusually high figures were an anomaly, supported by 638 units sold at Treasure Trove in Punggol.

Another factor was the raised income ceiling for EC buyers, with the full impact felt in September. The move expanded the pool of eligible buyers and generated a sudden spike in buying interest.

Still, last month's numbers were also dragged down by a decline in launches by developers. The number of new units launched has fallen by more than 50 per cent.

Dr Chua Yang Liang, Jones Lang LaSalle's head of research, said fears over the euro zone debt crisis continue to blight buyer confidence, reflecting the segment's 'sentiment-driven' nature.

Analysts said buyers typically seek out affordably priced projects, given that the global economic outlook remains uncertain.

Most new home sales last month - 64 per cent - were mass market homes in suburban areas.

Colliers International's director of research and advisory Chia Siew Chuin said this, coupled with a pause in large-scale launches, was the reason that Sim Lian Group's Parc Vera project in Hougang was the top-selling project last month.

'Parc Vera's median price of $840 psf (per sq ft) is lower than some of the other launches within the outside central region segment that have been selling close to the $1,000 psf mark,' said Ms Chia.

Last month's subdued performance may also have been a precursor to the seasonal slowdown typically experienced in the last three months of the year but analysts are not ruling out the possibility of an upswing in this month's figures.

Earlier this week, City Developments said it had sold 200 units at the preview of The Palette in Pasir Ris.

Several launches are also poised to come on the market towards the end of the year.

Both CapitaLand and the UOL Group-Singapore Land (SingLand) partnership are expected to launch their respective Bedok projects while market watchers are also waiting for MCC Land to start sales of its development in Sembawang.

Credo Real Estate's research and consultancy head Ong Teck Hui noted that the 13,688 developer sales in the first 10 months of this year have already exceeded the 13,117 units recorded for the same period last year.

But most industry experts say it is unlikely the number of new home sales this year will surpass figures from last year.

Ms Chia predicts some prospective buyers may be deterred by the continued uncertainty surrounding the global economy while others may be preoccupied by the school holidays and the festive season.

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