Latest Market News

New private home sales surge in March

Saturday 16 April 2011

SINGAPORE - The number of new private homes sold last month surged 25 per cent from February, snapping four straight months of decline, as investors and upgraders alike turned out in force, seemingly unruffled by the cooling measures announced in January.

The Urban Redevelopment Authority (URA) said on Friday developers sold 1,386 private homes last month, compared with 1,105 in February. Including Executive Condominiums, the total number hit an even more impressive figure of 1,543.

Strong economic growth and persistently low interest rates have kept sentiment bullish on property in general, even after four rounds of measures in 16 months to cool the housing market.

But analysts said they were still surprised by the stellar performance in March, saying they had expected sentiment to dampen in the wake of the cooling measures and the Japanese disaster.

Mr Chua Chor Hoon, senior director of research at DTZ, said: "In February, the numbers were lower because it is a shorter month and coupled with the Chinese New Year, so the period was shorter for people to buy. That could be one of the reasons why the number in February was low, and in March, there's this feel-good sentiment."

The URA said that, while the take-up rate of private homes had increased in March, on a quarterly basis, the sales had fallen 21 per cent.

In March, the suburban or outside-central region saw the most sales, with 631 units. Around 492 units were sold in the city fringe areas, while 263 units were sold in the core central region.

PropNex corporate communications manager Adam Tan said: "Investors seem to have taken the Jan 13 cooling measures in stride, with renewed demand in both the mid- and high-end markets. Excluding ECs, the number of units sold in the mid-range market, or $1,200 to $2,499 psf range, was 670, or 48.3 per cent of the total.

"The high-end market, with units costing $2,500 psf or more, recorded 75 units, or 5.4 per cent. Both markets saw the highest levels reached for this year and reflect a returning investor confidence in the mid-to-high-end property market here."

Mr Tan added the strong response to the launch of H2O Residences in Sengkang, as well as the 157 EC units sold, indicated sustained interest in private property by HDB upgraders.

"Including ECs, 798 units, or 51.7 per cent of the total, were sold below the $1,200psf mark," he said.

URA data showed that Scotts Square fetched the highest price, with a unit sold at S$4,334 psf.

At the other end, a unit at The Canopy, an EC, sold for S$530 psf. H2O Residences was the most popular project in March, with 255 units sold.

Source: Today