Numbers surged 42.8% in January
Feb 18, 2013 - By: iProperty.com Singapore
According to the latest release of data by Urban Redevelopment Authority (URA), new private home sales surged 42.8% in January, up from 1,410 units transacted in December. The figure of 2,013 homes sold marks the highest recorded in four months, and exceeded the 1,799 units launched by developers.
The surge in sales was attributed to the strong take-up in the first 11 days which took place prior to the announcement of cooling measures on Jan 12. Notably, about 60% of developer sales were inked before the property curbs. For instance, at EL Development's La Fiesta in Sengkang, it was one of many showflats that opened till late on Jan 11. The project saw an overwhelming response as potential buyers queued up to try to beat the midnight deadline. According to the developer, La Fiesta recorded 404 transactions in January, out of which the majority of 360 units were sold before Jan 12.
In addition, developers hinged on aggressive marketing by rolling out price discounts and rebates to buyers which encouraged sales after the cooling measures were introduced. For instance, Q Bay Residences registered 372 sales after offering stamp duty discounts of 5-7%. Besides, it also slashed its average price from $1,050 psf to $985 psf during its preview launch. On the other hand, D’Leedon Residences registered 263 units sold by offering price discounts of up to 15%, out of which 163 units were transacted after Jan 12.
However, experts said that the strong sales may not be indicative that buyers are not concerned with the additional stamp duties. Many have claimed that January’s numbers are a mere confluence of new launches, attractive pricings and rebates which would cause such robust buying behavior to be short-lived. Therefore, sales of such nature are not likely in the coming months.
With the new measures put in place, sales volumes are likely to head for stabilization and moderation. Transactional volumes are expected to be around 1,500-1,800 units per month on average for the first half of 2013 as there would be limits on incentives and discounts offered by developers.
As such, market watchers expect the full impact of the cooling measures to surface only after the first quarter of the year. With the recent announcement of the Population White Paper and the subsequent release of the Land Use plan, the government is sending a subliminal message to the public that the future looks bright for residential properties. Furthermore, with liquidity aplenty, the private residential property market is expected to thrive.
Martin Koh | 86666 944 | R020968Z
Sherry Tang | 9844 4400 | R020241C
Senior Sales Director
DTZ Property Network Pte Ltd (L3007960A)