DTZ says buying sentiment in private residential market cooled in Q2

Property consultant DTZ said buying sentiment in Singapore’s private residential market cooled in the second quarter due to the global uncertainty.

Market activity slowed in May and June due to a combination of the European debt woes, local stock market jitters and increased land supply.

DTZ said primary sales in the second quarter fell by 8 percent to 4,033 units, as developers slowed the pace of launches because of the subdued sentiment.

Sub-sales, an indicator of speculative activity, made up 10 percent of the non-landed transactions in the second quarter, lower than the previous quarter’s 13 percent

DTZ said the drop was due to the more subdued sentiment and the implementation of the seller’s stamp duty in February.

Luxury homes transactions also rose in the quarter as the share of purchases for units that are at least S$3 million edged to 10 percent of all transactions.

That’s a shade higher than the previous quarter’s proportion of 9 percent.

Most of the transactions amounting to S$3 million and above were done in the prime districts of 9, 10 and 11.

As for buyers, DTZ said the share of transactions involving HDB upgraders has stabilised at around the 34 to 36 percent mark for the past three quarters.

Despite the increase in prices, DTZ said the buyers are supported by the rising public housing resale prices.

Among non-Singaporeans, mainland Chinese buyers are closing in on overtaking the Indonesians as the second highest non-Singaporean purchasers group.

Mainland Chinese buyers made up 17 percent of non-Singaporean purchasers in the second quarter, while Indonesians constituted 18 percent.

Malaysians continue to be the top non-Singaporean buyers, accounting for 22 percent of total transactions by non-Singaporeans in the quarter.

Source : Channel NewsAsia – 23 Aug 2010

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