TODAY ONLINE : CBRE forecasts fewer private homes sales in Q2

CBRE forecasts fewer private homes sales in Q2

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05:55 AM Jun 30, 2010

by Mok Feifei



SINGAPORE - The private property market saw some slowing down during the second quarter of the year.

Property consultant CB Richard Ellis (CBRE) forecast that about 4,000 new homes were sold in the second quarter, lower than the previous quarter's figure of 4,380 units.

Also, in the resale market, CBRE estimated that 3,400 to 3,600 resale homes were sold in the second quarter.

If confirmed, that would be 15 to 20 per cent lower than the 4,261 resale homes sold in the previous quarter.

Sub-sales numbered about 500, down from 806 in the previous quarter as the market became less bullish, the report said.

Sellers were also mindful of the stamp duty payable if they sold their property within a year of purchase. In addition, the number of HDB upgraders buying private homes fell.

About 33.7 per cent of new home buyers in the second quarter this year had HDB addresses, lower than the 37.9 per cent figure of the previous quarter.

CBRE said the reduction could be attributed to a smaller supply of mass-market projects being launched in the second quarter. Nevertheless, CBRE said that about 8,300 new homes were sold in the first half of this year. This is more than half or 56.5 per cent of the 14,688 new homes sold for all of last year.

CBRE predicted that overall home prices in the second quarter could reflect a rise of between 2 per cent and 3 per cent on-quarter.

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