http://www.todayonline.com/business/...rtainty?page=1

SINGAPORE — The uncertainty surrounding Singapore’s private property market was highlighted over the weekend, with two launches achieving very different sales results: The Hillford retirement resort in Jurong completely sold out on the first day, while The Panorama condominium in Ang Mo Kio managed to sell only half of the units released.

Analysts said the contrasting fortunes of the two properties did not come as a surprise, citing a market backdrop where buyers are now more selective and sensitive to prices as cooling measures continue to dampen sentiments.

All 281 units of The Hillford were snapped up on the first day of sales on Friday because of attractive pricing and its unique offering, PropNex CEO Mohamed Ismail said.

“Hillford did exceptionally well because the quantum was so much lower, with the bulk of its units priced between less than S$500,000 and S$700,000. Marketed as a retirement resort, it also benefits from being the market’s first and only product of that nature,” he said.

“Therefore, despite its lease being a shorter 60-year, The Hillford was a draw not only for retirees, but also permanent residents and young buyers with an investment angle,” Mr Ismail added. “On the other hand, The Panorama is one of several similar offerings in the market. Buyers are more selective to the dollar they want to put on The Panorama, because they have alternatives in either the resale market or other new launches.”

With prices from more than S$600,000 to about S$2.8 million, The Panorama sold 60 of its 120 first-launch units — or about 10 per cent of its total 698 units — on Sunday. SLP International’s research head Nicholas Mak agreed that the latest project by Wheelock Properties was held back by its prices in a competitive market.

“Buyers are getting increasingly price-sensitive, in terms of both per-square-foot prices and quantum. With cooling measures such as the new Total Debt Servicing Ratio (TDSR), people are concerned about how big a loan they can get based on their income. That’ll certainly influence a decision between something over S$1 million or S$500,000.”

Along with TDSR, the Additional Buyer’s Stamp Duty (ABSD) was also substantially increased in January last year, making expensive units even less accessible.

These regulatory pressures, combined with seasonal weakness, drove last month’s new private home sales to a five-year low, the latest figures by the Urban Redevelopment Authority showed. Developers sold only 259 units last month, down 80 per cent from the 1,410 units sold in December 2012, the data showed.

Against this backdrop, The Panorama’s sluggish initial sales reflected a market trend that is putting greater emphasis on affordability.

“Unfortunately, due to land and construction costs, Wheelock wasn’t able to price The Panorama lower. But it’s a good product from a good developer — I believe it can take its time to sell,” Mr Mak said.

Wheelock Properties’ Senior Executive Director Tan Bee Kim shares the optimism, saying: “Although the dampening effects on the Singapore property market brought about by the Government’s cooling measures are still being felt, the recent World Bank economic forecasts augur well for Singapore.

“Hopefully, we may be looking at a more upbeat market sentiment and sustainable recovery.”