SINGAPORE: Sales of new private homes in Singapore declined by about 25.7 per cent to 1,948 units in October, from 2,621 units in September, according to data released by the Urban Redevelopment Authority (URA).
URA said October's sales were led by the mass market segment which sold a total of 1,482 units.
Meanwhile, 144 new homes in the core central region and 322 new units in the city fringe were sold.
The top three best-selling private condominium projects in October were Skies Miltonia which sold 309 units, followed by Riversails with 271 units sold and eCO with 149 units sold.
Including Executive Condominiums (EC), 2,624 units were sold in October - down from 2,771 units in the previous month.
The star performers in the EC segment included Heron Bay at Upper Serangoon with 354 units sold and Waterbay at Edgefield Plains which moved 221 units.
Developers launched a total of 2,410 units of private homes and ECs in October.
But there were fewer property launches last month, down 26.6 percent from a month earlier.
Analysts say it is a sign that developers are taking a breather to assess market reaction to the latest cooling measure.
From 5th October, home loan tenure has been capped at 35 years by the government.
Chua Yang Liang, Research Head (Southeast Asia), Jones Lang LaSalle, said: "This final quarter of the year transaction numbers tend to be lower. There tends to have a contraction. So I took a look at the comparison - last year's September to October decline versus this year's September to October. The number is higher this year - about 25 percent compared to 15 percent last year, suggesting that the policy does have some effect in some ways."
New home sales in the suburbs were 28.2 percent lower, and sales in the city were almost halved.
Compared to September, sales of new private homes in the suburbs, or Outside Central Region, dropped by 28.2 percent to 1,482 units while sales in the city, or Core Central Region, was 144 new private units, a 42 percent decrease.
Still, prices are expected to remain high.
Ku Swee Yong, CEO of International Property Advisor, says: "I think the market has already come to accept that a million dollars in the outskirts of Singapore is now entry level pricing. But we also did see a few surprisingly high numbers. For example, in Bedok, the new launch called eCo has actually surpassed S$1,700 per square foot. So that is a new high for Bedok in the outskirts of Singapore."
Property analysts say the market is still flushed with cash and low borrowing rates.
To moderate demand for new private homes, the government is releasing more land.
On Thursday, the government released four more sites for sale.
In all, these sites can yield about 2,045 private units.
With October's sales figures, 2012 so far would have seen 20,187 units sold, breaking the previous record of 16,292 units in 2010.
Martin Koh | 86666 944 | R020968Z
Sherry Tang | 9844 4400 | R020241C
Senior Sales Director
DTZ Debenham Tie Leung (SEA) Pte Ltd (L3006301G)
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