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New Private Homes Sales Increase By 29% In February

May 27th, 2012 · No Comments

SINGAPORE: Demand for new private homes in Singapore keep on increasing in February, after going up sharply in January.

The Urban Redevelopment Authority said with the exclusion of  executive condominiums, 2,413 new private homes were disposed in February, up by about 29 per cent from the preceding month.

In January, 1,872 new units were sold, almost three times more than the  December’s sales.

For February, the best selling Singapore property projects were by and large situated in the suburban areas.

The top seller was Parc Rosewood  having  380 units sold.

Guillemard Edge, which is positioned in the city fringe, also performed well with sales of 275 units.

For the meantime, home buyers also snapped up executive condominium (EC) units.

About 257 units of ECs have been sold at Twin Waterfalls, 187 units at The Tampines Trilliant and 186 units at The Rainforest.

With the inclusion of  ECs, a total of 3,138 units were disposed last month, up 51 per cent as compared to January.

Analysts said low interest rates are stimulating demand intended for private properties in Singapore.

They also wait for demand to hold up in March and said sales will continue healthy going forward.

Chua Chor Hoon, head of Asia Pacific research at DTZ, said: “After the December cooling measures, in January and February, you see that sales volume has in fact increased a lot more. And if it continues to be at a high level, say above 1,500 units per month excluding ECs, then it is very likely that the government will come up with more cooling measures.”

Even though analysts expected additional property cooling measures coming from the government, several of them maintain that the possible impact will be muted.

Alan Cheong, research head at Savills Singapore, said: “It is not like a sudden surprise; after five rounds, it has come to a conclusion that whenever markets are strong, there is a serial tendency to impose more and more measures. That impact itself, the moment you expect it to happen, it is not a shocker. It will not have a great impact on the negative side. “

Some analysts also observed that majority of home buyers in the suburbs consisted of  first-time buyers or second-home local investors. Hence, they are not covered by the additional buyer stamp duty

Meanwhile, experts have said that healthy demand does not follow that the  private home prices will go up.

Ong Teck Hui, executive director and research head at Credo Real Estate, said: “Prices are likely to stay stable, because there is a huge amount of supply coming on. If you look at GLS (Government Land Sales), there have been quite a number of sites that have been sold already, and queuing up to be launched.

“With that in mind, I think the developer will not be able to up the pricing. So long as the demand remains buoyant, it will keep the prices stable. Because at this price level, they are able to move the units.”

 

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