New private home sales more than doubled in February

New private home sales more than doubled in February

Demand for new private homes more than doubled in February, with 977 units sold by developers compared with the 382 units sold in January, according to figures by the Urban Redevelopment Authority (URA) on Wednesday (Mar 15).

Compared to figures a year earlier, the 977 units sold is more than triple that of the 303 units sold last February.

Including executive condominiums (ECs), a total of 1,306 units were sold last month. The 329 ECs sold is an 81 per cent jump from the 182 units sold in January.

There were 550 new units launched by property developers last month, which is more than the 108 in January, and the majority came from The Clement Canopy and Parc Riviera in the Clementi and West Coast region of Singapore.

Mr Eugene Lim, key executive officer at ERA Realty Network, said the figures represented a “good start” to the year and activity from buyers can be expected to persist.

He noted that developer figures are expected to receive a bump in March for both EC and private home segments due to the launch of Grandeur Park Residences, Park Place Residences At PLQ and iNz Residence, and new sales in March will probably range between 1,100 and 1,300 units.

“Investors, especially, will be on the lookout as the minimum holding period to avoid paying Seller’s Stamp Duty has been shortened to three years. As the construction period for new projects typically take around three years, buyers will have the flexibility of reselling the unit when the projects obtain their Temporary Occupation Permits,” Mr Lim said.

“Those looking to rent out their units are also likely to prefer uncompleted projects as they can buy time over the construction period to wait out the current downturn in the private residential rental market.”

He expects the positive buying sentiment to continue until the June school holidays, “when things could tone down a little”.

Source : Channel NewsAsia – 15 Mar 2017