New private home sales jump in March

Sales of new private homes jumped by four times in March, compared to February.

Latest figures released by the Urban Redevelopment Authority showed that developers sold 2,793 new units (excluding executive condominiums) in March

This is the highest monthly sale volume since June 2007, surpassing the previous high of 2,772 units in July 2009, according to Dennis Wee Group.

This is also in sharp contrast to the 712 new private homes sold by private developers in February.

March’s strong sales volume came despite the government’s latest round of cooling measures introduced in January this year to curb the Singapore property market.

Analysts said developers’ decisions to hold back property launches in February in view of the festive season and the cooling measures had paid off.

Popular new launches include D’Nest, Bartley Ridge, Urban Vista, Senette Residence and Hillion Residences.

Ong Teck Hui, national director of Research & Consultancy at Jones Lang LaSalle said, “By keeping new supply off the market in February, developers have benefited from a strong demand rebound in March as well as the resultant positive impact on the market. It tells us that notwithstanding the latest measures, underlying demand remains healthy.”

Eugene Lim, key executive officer of ERA Realty Network said more home buyers are flocking to new launches as developers offer promotions and discounts to offset the higher additional buyers’ stamp duties.

“The latest March numbers show that well located projects that are priced competitively will continue to sell well,” he said.

Meanwhile, URA data showed that 1,814 units of new private homes located in the suburbs were sold in March, while developers moved 822 units in the fringes.

But the number of new private homes sold in the city dipped slightly to 157 units.

Mohd Ismail, CEO of PropNex, said, “Moving forward, the private property market is expected to remain subdued as the full impact of the property cooling measures is yet to be seen. Sales volumes are likely to stabilise. Transactional volumes are expected to be around 1,400-1,600 units per month on average for the first half of 2013 as the incentives and discounts are still being offered by developers.”

Source : Channel NewsAsia – 11 Apr 2013

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