New private homes sales nosedive in April
Channelnewsasia.com | 15 May 2013 2:03 PM
Sales of new private
homes, excluding executive condominiums, nosedived by some 50 per cent to 1,375
units in April, according to figures released by the Urban Redevelopment
Authority on Wednesday.
SINGAPORE:
Sales of new private homes, excluding executive condominiums, nosedived by some
50 per cent to 1,375 units in April, according to figures released by the Urban
Redevelopment Authority (URA) on Wednesday.
This
compares with the 2,793 units moved in March, which was the highest monthly
sales volume since June 2007.
The
April figure was also lower than the 2,497 new home sales recorded in the same
month a year ago.
Market
watchers were not surprised by the sharp fall in April.
They
had expected the decline, given the extraordinarily high base of sales seen in
March, something they said was unsustainable.
Furthermore,
the lack of large-scale project launches in April naturally meant fewer sales.
According
to Nicholas Mak, SLP International Property's research head, nine of the 12 new
launches have less than 150 units each.
He
said some of these new developments consist of a high proportion of small
apartments, which do not appeal to some HDB upgraders and owner-occupiers who
form the backbone of the housing demand in the current market.
However,
Nizam Gafoor, PropNex Realty's senior associate district director, said:
"The April transaction is still a very heathy number. We should not
correlate that to March or should not also interpret that as 'got to do with
the cooling measures'.
"March
figures were exceptionally good because of the project launches. There were
some good projects. As far as April is concerned, we don't see any.
"If
there are going to be any new launches in good location and they are
sensitively priced to the interest of the upgraders, yeah, certainly there will
be an increase in interest in that specific project, which will translate to
more transactions."
Meanwhile,
existing projects such as Bartley Ridge, D-nest and Urban Vista continued to do
well in April. Experts said this reflects the continued strong interest from
genuine buyers.
The
fall in April's sales volumes also does not signify a sudden reaction to the
government's several rounds of property-cooling measures, said analysts.
When
it comes to property cooling measures, the government has indicated that the
aim is to take a soft-landing approach, which means there should not be sharp
or drastic corrections to the market.
Eugene
Lim, key executive officer of ERA Realty Network, said: "Price increase
seems to have moderated. Actually, that's an indication that the cooling
measures are actually effective in capping the rate of price increase.
"Volume
is a totally different story, because at the end of the day, there is a lot of
land sales and the developers have pitched for the land, they have to sell the
units."
URA
data showed that developers sold 727 new private homes in the suburbs in April,
down 60% from 1,814 in March. The number of new units moved in the city fringe
region declined 43% to 470 units.
But
the number of new private homes sold in the city area rose by 13.4% to 178
units in April.
Looking
ahead, experts expect developers to launch several new projects in the next few
months, which are expected to push up monthly sales volumes.
Observers
expect monthly sales volumes of new private homes to hover around 1,600.
Martin Koh | 86666
944 | R020968Z
Sherry Tang |
9844 4400 | R020241C
Senior Sales
Director
DTZ Property
Network Pte Ltd (L3007960A)
Email: marshe_inc@yahoo.com.sg
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