More property launches seen after Lunar New Year

Property experts say more homes will be launched over the next two months to make up for the lull during the Lunar New Year period. And homebuyers will be spoilt for choice.

Experts say developers are likely to launch more properties to avoid getting blindsided by further cooling measures.

Far East Organization’s Waterfront Isle is one of the first residential properties to launch over the Lunar New Year period. It exceeded market expectations, selling more than half of the 59 units released.

Other properties expected to be launched soon are Okio Residences by SDB Asia, NIN Residences by Chinese developer Qing Jian Realty, and The Cape, another Far East property.

Analysts say enthusiasm among buyers for Waterfront Isle is good news for developers.

Colin Tan, head of research and consultancy, Chesterton Suntec International, said: “Developers will take heart from this and will go full steam ahead with other launches.

“The market has weathered another round of cooling measures and they are taking this time to secure as much demand as they can from the market.”

Property launches typically surge after Lunar New Year.

In April last year, at least 20 developers released their units for sale. In comparison, only nine non-landed properties launched their units in February 2010.

This time around, analysts say there will be even more launches than usual.

Mohamed Ismail, chief executive officer, Propnex, said: “In fact starting from March, April and May, we will see bigger numbers. The government has made it a point to release more land in the last one year, and again continuously committed to release additional land as long as there is great demand.”

Some analysts say that in the near term, supply of new homes may overwhelm demand.

Mr Mohamed Ismail said: “I don’t expect the next few launches, especially when the numbers are going to be in greater numbers, that the take up rate is going to be 100 per cent sold out in one week. I don’t expect that kind of scenario. I do expect a good take-up rate of more than 50 per cent in any of the launches.”

Perhaps that is why some property developers are throwing in freebies.

For instance, residents of Waterfront Isle will receive furniture coupons worth 5 per cent of their unit’s selling price upon approval to move into their new homes.

Source : Channel NewsAsia – 8 Feb 2011

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