Demand for private homes rebounds in July

SINGAPORE: Demand for private residential properties in Singapore rebounded in July, according to data released by the Urban Redevelopment Authority (URA).
Figures showed that excluding Executive Condominiums (ECs), sales of private properties rose to 1,943 units last month, up nearly 42 per cent from June.

Three out of the top four best selling projects were located in the suburban areas.

They were Parc Centros in Punggol which sold 492 units last month, Parc Olympia located in Loyang (204 units) and River Isles in Punggol (86 units).

Meanwhile, V on Shenton, located in the core central region, was the third best selling development with 144 units sold in July.

Sales rose across the board in July, with the core central region seeing the steepest increase, with 253 units of new homes sold in the central area, up by 79 per cent on-month.

Analysts say this is driven by the narrowing gap between prices of city homes and mass market projects.

HSR’s special advisor, Donald Han, said: “Smart money is beginning to slowly trickle back to the core central region area which is where some developers are taking the opportunity to start launching projects. Primarily, we are looking at projects ranging from S$2,000 per square foot (psf) and beyond, and that is starting to bite.”

Propnex’s chief executive officer, Mohamed Ismail, said: “When one compares with the mass market near the MRT which is going at S$1,300 to S$1,400 psf, a core central region at S$2,000 psf is an irresistible offer.”

Meanwhile, sales of new units at the city fringe rose 52 per cent on-month to 181 units in July. The mass market segment moved 1,509 units last month, up 36 per cent compared to June.

Based on the transactions in July, analysts say many of the top sellers are priced modestly and this reflects growing resistance to further price increase.

For instance, the median price at Parc Centros was S$924 psf and S$874 psf at Parc Olympia.

Over 11,900 new homes have been sold in the first half of the year, but analysts expect sales to slow in the second half, partly due to the upcoming Hungry Ghost Festival and the year-end festive period.

For the full year, analysts expect new home sales to come in at between 20,000 units and 21,000 units.”

Developers placed 1,767 units of new private homes for sale in July, compared to June where 1,303 units were launched.

Including ECs, URA said a total of 2,067 units of new homes have been sold in July.

Between January and July 2012, a total of 13,871 new private homes and 2,550 ECs have been sold.

Source: Channel News Asia, 15 Aug 2012