http://www.straitstimes.com/premium/...e-way-20130618
New home sales stabilise; more land on the way
Published on Jun 18, 2013
By Fiona Chan
SALES of new homes in Singapore are showing signs of stabilising, with transaction volumes holding steady last month and more land being released to meet residential demand this month.
Developers sold 1,455 units last month, 5.4 per cent more than in April, the Urban Redevelopment Authority (URA) said yesterday. This breaks a 12-month streak of double-digit swings in new home sales. It comes despite new launches jumping 31 per cent last month, data showed.
While demand could have been dented in the last week of May by the stock market dip, analysts said steady sales show buyers and developers are adjusting after property curbs in January.
"The steady transaction level could be due to robust demand from genuine first-time home buyers as well as competitive pricing put out by developers to entice potential home buyers," said PropNex chief executive Mohd Ismail.
Ms Chia Siew Chuin, director of research and advisory at Colliers International, noted that demand nearly matched supply last month, with sales close to the 1,521 units launched.
"This provides some indication that pent-up demand is gradually being met, while cooling measures are also slowly working through the market," she said.
Including executive condominiums (ECs), the sales tally last month was 1,912 units, up 23.2 per cent from April, URA said.
This was largely due to Twin Fountains in Woodlands, which sold 316 units last month at an average price of $741 per sq ft (psf).
While most of the buying demand continued to focus on affordable suburban homes, interest also returned to pricier ones.
About 40 per cent of the units sold last month were located in city-fringe areas, the highest proportion since August 2010, said Knight Frank associate director and head of research Alice Tan.
She attributed this to some popular launches in these areas as well as rising suburban home prices, which are narrowing the gap with city-fringe homes.
In the prime central districts, the number of new homes sold fell to 125 last month from 178 in April. These included three units that sold for more than $5,000 psf - one in Hamilton Scotts and two in TwentyOne Angullia Park - for the first time since September last year, said Maybank Kim Eng analyst Wilson Liew.
Analysts expect sales to stay steady this month as concerns over the economy and financial market turmoil balance out some anticipated new projects, including J Gateway in Jurong.
Meanwhile, the Government said yesterday it would put up five new sites for sale this month, yielding 3,600 homes in all. Two are EC sites, at Punggol Drive, and Yuan Ching Road in Jurong, which were launched for sale yesterday.
A condo site at Mount Sophia will be launched for sale on June 28, as will a commercial cum residential site at Yishun Central 1. A similar mixed site at Meyappa Chettiar Road will be made available for application on June 28 as well.
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