New private home sales in November fall to lowest level in 2012

The number of new private homes sold in November fell to the lowest level in 2012.

Excluding executive condominiums (ECs), 1,087 units were sold in November — 44.2 percent less than in October.

It is also the second straight month of decline.

October saw 25.7 percent less homes moved in at 1,948 units.

Analysts attribute the decline to fewer property launches last month.

Savills’ research head, Alan Cheong, said: “We had expected originally much higher numbers, believing that perhaps Echelon, Senette Residences may have been launched in November, but they didn’t, so they may be pushed to December or next year.

It is always a lull period for the property market at this time of the year as more people are travelling.

Some analysts said the latest cooling measure has kept buyers on the sidelines as they assess the impact of a shorter loan tenure on the property market.

Meanwhile, more homes were sold in the city last month.

Some 209 units were sold in the core central region — 45 percent more than in October.

But in the city fringes, sales dipped 52.9 percent to 167 units.

Knight Frank’s research head, Png Poh Soon, said: “The market had a good run up over time and most people are wondering where it will be, going forward. Of course, buyers are also looking around for bargain buys. And we have observed that the resale volume has increased and prices have gone up from the retail side.”

Low interest rates and volatile markets have pushed many investors to seek refuge in property.

2012 would likely be a record year for the number of new private homes sold.

Up till November, 20,879 new units have been sold, breaking the previous record when 16,292 units were sold for the entire 2010.

Looking ahead, most analysts expect the healthy market demand to continue and prices to stay firm.

Source : Channel NewsAsia – 17 Dec 2012

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