Tuesday, October 16, 2012

New home sales soar due to pent-up demand

SINGAPORE - Sales of new homes in Singapore surged 83.7 per cent last month as the market stirred back to life after the Hungry Ghost Festival, driving total developer sales to a new annual high with three months of the year to go.

Developers sold 2,621 homes last month excluding executive condominiums, up from 1,427 in August and the highest number since July 2009, data from the Urban Redevelopment Authority showed yesterday.

For the first nine months of the year, developers sold 17,927 private homes, 12.7 per cent above the total of 15,904 units sold last year and 10 per cent above the record high of 16,292 units in 2010, noted Ms Chia Siew Chuin, Director of Research & Advisory at Colliers International.

New private home sales could hover in the region of 3,000 to 4,000 units in the last quarter of the year, bringing the total sales volume for 2012 to a record high of 21,000 to 22,000 units, she added.

The strong primary market performance last month was driven by the launch of three major mass market housing projects - Riversails in Upper Serangoon, Kovan Regency and eCO in Bedok South. Demand was shored up by the low interest rate environment, stable employment and the US Federal Reserve embarking on a third round of quantitative easing, Ms Chia said.

Mr Nicholas Mak, executive director at SLP International Property Consultants, said: "We are seeing pent-up demand from August as developers have increased their project launches last month after holding back sales due to the Hungry Ghost Month." Home buyers typically stay away during this period occurring in the seventh month of the Lunar Calendar, which they consider to be inauspicious.

Underlining the strength of the demand, new homes sold in the third quarter amounted to 5,999 units, exceeding the 5,115 units launched. For the first time in eight quarters, new sales have exceeded new launches, reflecting robust demand for private homes in Singapore, particularly for mass-market homes in the Outside Central Region, Ms Chia said.

Barring any major global economic crisis, demand for new private homes is likely to remain largely positive for the rest of the year as more projects are launched, according to Colliers. Looking further ahead, however, the large supply hitting the market in the next few years, and the latest loan curbs may result in a moderation of sales as the threshold for buyers has been raised, Ms Chia said.

Martin Koh | 86666 944 | R020968Z
Sherry Tang | 9844 4400 | R020241C
Senior Sales Director
Email: marshe_inc@yahoo.com.sg
DTZ Debenham Tie Leung (SEA) Pte Ltd (L3006301G)

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