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February 2014 Private Home Sales Went Up

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Two condominiums in Sengkang area boosted the sales of new private homes Singapore for the month of February. The 724 units sold by developers in February led to a 28% increase from January’s performance. This is based on the figure shown by URA or Urban Redevelopment Authority.

With 218 units sold out of the 300 units launched by Rivertrees Residence, the project became the best seller of the month (February) and this is followed by Riverbank @ Fernvale where out of the 250 units- 211 have been handed to buyers. The performance of these projects covered the 59% total sales for the month of February as mass market homes kept on boosting sales.

URA also showed that 588 new units turned key in the suburban districts which is followed by the 87 units sold in the fringe of the city and 47 were sold in the Core Central region.

The director for Research and Advisory of Colliers International- Chia Siew Chuin- stated , “The exuberance has indeed been shaven off largely because of the effects of the TDSR (total debt servicing ratio); we are still looking at demand from the genuine buyers that are driving the market.” She further commented, “so a group of buyers is still looking out for value buys — they are very selective. By and large, the market is steering towards a stable state as of now.”

Analysts also said that the performance of existing launches is muted and this could be a call for some developers to improve their marketing.

The number obtained in February does not mean that the prices of homes will be corrected anytime soon, according to the analysts. Moreover, market watchers commented that there is a very slim hope for the government to ease down the cooling measures on the real estate of Singapore.

Mr Ku Swee Yong of Century 21 Singapore stated, “In fact, with the mass market prices still going at above S$1,000 psf, and this month we also saw a transaction in Pasir Ris that is S$1,500 psf.”

“In Bedok, again we are seeing S$1,600 psf transaction… this type of record setting type of prices probably would mean that the government would continue to keep the cooling measures in place.”

There are also analysts who believe that there is an emerging trend focusing on more affordable units acquired at their initial launches. This could result to stagnating or decreasing sales of left out units.

Market watchers are also positive that the new home sales will be between 800 and 1000 units per month- but, this is only if the price is right!

In summary, there were 671 private units launched in February which inclusive of ECs or executive condominiums and developers sold out 769 units.

Reference: Channel News Asia

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