Private home sales down 29% in October to 811 units
November 16, 2009
SINGAPORE: Sales of uncompleted private homes continued to fall in October, making it the third month of decline in a row. Just 811 units were sold last month, a 29 per cent slide compared to September.
This is also the first time since January that private home sales have dipped below 1,000 units. However, October saw a pickup in the number of high-end units being sold.
While mass market homes have been dominating the sales records since February, more than a third of the units sold in October had median prices above S$1,500 per square feet.
In fact, the top-selling property last month was Cyan at Bukit Timah Road, where 80 units were picked up by buyers at a median price of S$1,821 per square foot.
The most expensive unit sold was at Boulevard Vue at Cuscaden Walk, which went for S$4,150 per square foot.
Source: Channelnewsasia.com
S’pore private home prices dip 6.1% in Q4 as recession continues
January 23, 2009
SINGAPORE: Private home prices fell by 6.1 per cent in the fourth quarter of 2008 as Singapore continues to face recession woes.
The decrease marked the second quarterly decline in residential property prices following a 2.4 per cent fall in the third quarter ended September.
The latest decline, announced in data released by the Urban Redevelopment Authority (URA) on Friday, was worse than expected. Initial estimates earlier this month had forecast a 5.7 per cent drop.
The URA also said that rents in the fourth quarter slipped 5.3 per cent.
Analysts said the trending down in prices came as no surprise as demand for new homes has been softening amid the economic downturn.
For 2008 as a whole, prices of private residential properties fell by 4.7 per cent. This is a turnaround from the 31.2 per cent jump in the previous year.
According to URA, 706 uncompleted units were launched for sale by developers in the fourth quarter, down from 2,244 units in the previous three months.
Sales also slipped, with 407 deals done compared to 1,452 units sold in the previous quarter.
Meanwhile, the public housing sector remains more resilient. Resale prices of HDB flats in the fourth quarter rose by 1.4 per cent, albeit lower than the 4.2 per cent increase recorded in the third quarter.
Resale transactions fell by 24 per cent to about 6,190 units, while the median cash-over-valuation amount dropped by S$4,000 to S$15,000 in the fourth quarter.
Source: Channelnewsasia.com
Private home launches in Dec 2008 at record low
January 16, 2009
SINGAPORE: Islandwide launches of new private homes in December 2008 slumped to a record low since the Urban Redevelopment Authority (URA) started releasing the monthly figures in June 2007.
Developers placed just 157 units for sale last month, down by 59 per cent from November.
Analysts said there has been softening demand for homes. But the low launch volume could also be due to seasonal adjustment and developers holding out for the government’s Budget announcement next Thursday.
Analysts, however, said that not all developers can afford to delay projects.
Donald Han, managing director, Cushman & Wakefield, said: “Smaller developers may decide to sell in order to move assets and move their inventory. So, price cutting may happen at a strategic level for smaller developments… and also the secondary markets where there will be fiercer price cuts.”
Overall, market watchers said they expect property prices to erode by another 5 to 7 per cent in the first quarter this year.
They said prices in the luxury home segment could see a 25 per cent drop, while suburban and mid-tier properties may be 10 to 20 per cent cheaper over the next 12 months.
December sales volume also fell, dropping 32 per cent on-month to 131 units, as home buyers continued to be cautious.
Analysts said that even the fairly resilient mass market segment is starting to feel the strain of the economic downturn. However, data also showed that home hunters are still in the market for good buys.
Dr Chua Yang Liang, head of research & consultancy at Jones Lang LaSalle, said: “The Ritz Carlton Residences, back in December 2007, some 3 transactions were reported at a median price of some S$5,000 per square foot. Now, some 8 transactions were reported by the developer at a median price of some S$3,000 per square foot.”
Projects in prime areas like Newton Edge also saw good take-up, with 40 units sold in December at an average price of S$1,200 per square foot. Analysts said this translates to less than S$1 million for a unit, which is the threshold for most buyers in the current market.
For the whole of 2008, developers sold an estimated total of 4,287 units, 71 per cent shy of the 14,811 new units sold in 2007, bringing developers’ sales volume to a nine-year low.
Industry players expect the property market to remain quiet over the next six months until there is a clearer indication of where the economy is heading.
They hope the Budget statement, to be announced next Thursday, will provide measures to support companies and save jobs, which will have an impact on the property market.
The items on their wish-list include vouchers to boost domestic spending and tax cuts to lower business costs.
Source: Channelnewsasia.com
Private home prices down 5.7% in Q4, HDB resale flat prices still up
January 3, 2009
SINGAPORE: Prices of private, non-landed residential properties in Singapore fell 5.7 per cent in the last quarter of 2008.
The quarter-on-quarter drop in private home prices is more than double the 2.4 per cent decrease in the July-September quarter.
Experts said the steep fall is fuelled by deteriorating sentiment. Market players are also matching prices to falling valuations.
Nicholas Mak, consultancy and research, Knight Frank, said: “The individual sellers are being more realistic in their offer price, though there are some segments of sellers who are still resisting, or still hoping to sell at break-even (prices) or at a profit.”
In contrast to the decline in private home prices, new HDB data on Friday showed HDB resale flats continued to buck the trend, climbing 1.5 per cent in the fourth quarter - following a 4.2 per cent increase in the third quarter.
Experts said this resistance to downward pressure in the HDB resale market is expected to continue despite the economic downturn.
Eugene Lim, associate director, ERA Asia Pacific, said: “Buyers are coming from people who are upgrading (and) people who are downgrading… also, from the increase in the population of PRs (permanent residents). So the (demand for) HDB resale flats is very strong.”
Observers said they expect flat or slow declines for public housing prices compared to steeper devaluations in the private home sector. They added this is the trend during times of uncertainty when home buyers opt for the safer option of HDB flats.
Knight Frank estimated that by the end of 2009, private home prices could come down as much as 20 per cent, while HDB flat prices could decline by 5 to 10 per cent.
In a statement released on Friday, the Urban Redevelopment Authority (URA) also reported price changes in three geographical regions for the fourth quarter.
Non-landed private residential property came down by 6.3 per cent in the Core Central Region, while it dipped 5.5 per cent in the rest of the Central area. In areas outside the Central Region, prices slid by about 4.7 per cent.
Source: Channelnewsasia.com
Singapore’s Q3 private home prices down 2.4% on-quarter
October 25, 2008
SINGAPORE: Private home prices in Singapore came in weaker than expected for the third quarter, dropping by 2.4 per cent - worse than an earlier estimate of 1.8 per cent. The quarter-on-quarter drop was the first decline in more than four years.
Data from the Urban Redevelopment Authority (URA) showed prices fell across the board, with prices for high-end homes in prime areas seeing the biggest drop of 2.7 per cent.
Analysts said there has not been panic selling yet, but they expect prices to drop by about 3 to 5 per cent in the quarters to come.
Donald Han, managing director of Cushman & Wakefield, said: “We don’t know what’s going to happen in the next 2 to 3 months. There will be people who’ve been affected by the stock market (declines), who might be late in their payment, and that might eventually translate to more pressurised selling.”
The mass-market and mid-tier segments, which have shown some resilience in previous quarters, have also not been spared.
Prices for mass-market homes fell by 1.5 per cent, while those for the mid-tier segment declined by 2.4 per cent.
URA said there are over 66,000 units of private homes in the pipeline - of these more than 37,000 units will be completed by 2011.
Some property consultants said developers may choose to launch their projects before the market gets worse.
Tan Huey Ying, Colliers International’s director for research & advisory, said: “Now that the market is firmly on a downward path, I think there are some developers who may take this opportunity to launch their projects instead of waiting for prices to drop even further.
“On the other hand, there might be some developers with strong financial standing who may want to continue to develop their properties, but launch at a later date when the market recovers.”
Sub-sales accounted for about 11.6 per cent of all sales transactions in the third quarter.
Ms Tan expects this segment to hold steady for the next six to nine months. And it is likely to be dominated by purchasers for properties that are nearing completion or speculators who opt to take profit now.
Rentals of private residential properties also fell in the third quarter, dropping by about one per cent.
Meanwhile, Housing and Development Board (HDB) data showed prices of resale flats rose by 4.2 per cent in the third quarter compared to the previous quarter.
Source: http://www.channelnewsasia.com/stories/singaporebusinessnews/view/385086/1/.html