Home sales volume down in 2011: DTZ

Private home transactions fell in 2011 with decreased sales volumes in both the primary and secondary markets, said DTZ Research.

“Demand was more affected in the prime areas compared to the suburban areas which continued to be supported by HDB upgraders and local investors who are drawn by smaller and more affordable units, costing less than S$1 million,” it said.

Buyer’s sentiment was supported by the healthy job market, favourable interest rate and rising HDB resale prices.

Although home purchases throughout 2011 were still dominated by Singaporeans, foreign purchases climbed to 17 percent last year from 12 percent in 2010.

This year, local buyers are expected to dominate the market, following the implementation of the ABSD (additional buyer’s stamp duty) in early December.

DTZ also highlighted that demand was higher for units priced at S$1 million or less.

“Similar to 2010, private residential units costing S$1 million or less formed the bulk (40 percent) of total purchases in 2011, followed by private homes costing between S$1-S$1.5 million which made up 30 pecent of the total purchases.”

On the other hand, only 106 units transacted at an average price of S$2,500 psf and upwards in Q4, from 120 units in Q3.

“Most of these units were located in the traditional prime districts of 9, 10 and 11. Top selling projects include Scotts Square (14 units), The Scotts Tower (nine units) and Marina Collection (seven units). The highest unit price transacted in the quarter was for a unit at The Marq on Paterson Hill at S$6,840 psf,” added DTZ.

Source : PropetyGuru – 28 Feb 2012

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