Sales of uncompleted private homes remain down in November

Sales of uncompleted private homes remain down in November
Dec 16, 2009 - PropertyGuru.com.sg

Singapore’s sales of uncompleted private homes in November dropped 26 percent, making it the 4th successive month of decline.

About 600 units were sold in November, the second lowest level since January 2009 when private home sales dropped below 1,000 units.

But several experts said that 600 home transactions in November was not a bad figure.

The director and head of research services (Asia-Pacific) of Cushman & Wakefield, Ang Choon Beng, said "600 is still higher than the sales in November 2007, and is about three times higher than the sales in November 2008. So all in all, I don't think the number is bad, or anything to be alarmed about."

Real estate lecturer at Ngee Ann Polytechnic, Nicholas Mak, also said "This (November) is towards the end of the year, and coupled with the government's measures, we do expect some slowdown in the home sales."

The year-end result is traditionally slow for the real estate market. In September, the government implemented anti-speculative measures to cool off the market, and announced it would release more land for homes by the second half of next year.

"This situation (cooling of property sales) is likely to persist for the next few months. The sale volume is likely to remain less than 1,000 units per month,” said Mr. Mak.

"But what is interesting in the November figures is that there is a slight increase in the number of units launched and sold in the prime districts. We suggest that developers are trying to start up the sale momentum, the sale interest, in this area," he added.

More than half of the home transactions in November had median prices beyond S$1,500 per square foot (psf).

The top seller in November was the Parvis at Holland Hill, with 103 units sold for about S$1,507 psf. The Boulevard Vue at Cuscaden Walk had the most expensive price tag last month, with three units sold at a median price of $2,850 psf.

Market watchers said they expect mass-market property prices to remain steady for the next few months, but high-end properties may increase, especially with additional attractions such as the upcoming integrated resorts.

Looking forward, experts said the prices and units sold in March to April next year will give good indication of the real estate market boom.