http://www.straitstimes.com/Money/St...ry_805257.html

Demand up in central region for resale units

221 such private homes were sold last month, a 3% rise from March

Published on May 31, 2012

By Amanda Tan


MORE home hunters bought private resale homes in Singapore's central region in April, even though prices picked up marginally from the month before.

In recent months, buyers have tended to shun downtown addresses while suburban launches have been booming.

But property consultant Ong Kah Seng said 221 resale units were sold in the central areas last month, a healthy 3 per cent rise from March's 215 units.

Mr Ong, director at R'ST Research, said the figure includes non-landed upper-middle to luxury homes in districts 1 to 4, and 9 to 11. It excludes shoebox apartments, defined as measuring 506 sq ft or smaller.

A recent report compiled by the National University of Singapore's Institute of Real Estate Studies found that overall resale prices inched up by 0.8 per cent in April. In the central region, prices rose by 1.6 per cent.

The resale market was driven by the fact that there were few project launches in the central region, Mr Ong told The Straits Times. Also, would-be buyers began to recognise that prices there were fairly attractive, after stagnating over the past six months.

'The long wait for downward re-pricing, which did not occur, and increasing buyers' appreciation of strong investment fundamentals of centrally located homes led to firmer demand,' he explained.

Condominiums like The Sail @ Marina Bay, Orchard View and River Place boasted the highest number of resale transactions in April.

The Sail @ Marina Bay, for example, saw nine transactions in the month, at a median price of $2,020 per sq ft (psf).

The good showing in the central region, however, was not duplicated in the non-central areas.

In April, 678 resale private homes, excluding shoebox units, were sold - a 10 per cent drop from March.

Still, Mr Ong called the level 'healthy'. 'The continued firm demand illustrated that... there is considerable interest by buyers with ready financing power, who saw resale as cheaper choices.'

Experts say the resale market will be able to maintain its current momentum, with keener interest in areas such as Hillview, where there are new developments.

Within the central region, the so-called core central region (CCR), boasting high-end homes, did well in the resale market in April.

The smaller CCR is considered the top end of the Singapore residential market and includes areas such as Orchard and Newton.

These homes commanded a median psf price of $1,616 in April, up from March's $1,516, according to data from Savills Research & Consultancy.

Suites @ Newton, for instance, saw a 14 per cent increase - the highest rise in the CCR - in median prices from March to April, when it was $2,240 psf.

Still, some condos such as The Sail @ Marina Bay registered price falls recently, compared with about a year ago, noted PropNex chief executive Mohamed Ismail.

He attributed this trend to differing behaviour by various owners.

Some are holding on to their properties while others are ready to sell cheaper now because they had bought them at even lower prices several years back.

'Overall, the (CCR) market is still relatively strong, prices are intact... people are not dumping properties. But as the volume of transactions is still low now, the true trend is not reflected yet,' Mr Ismail said.

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