Private home sales fall as Government pushes out more supply

Private home sales fell 12.7 per cent last month, compared to April, and analysts expect sales – as well as prices – to moderate further given the Government’s plans to push out more supply in the coming months.

Data released yesterday by the Urban Redevelopment Authority (URA) showed that 1,575 private homes were sold last month, compared to 1,805 units sold in April.

Total sales, including Executive Condominiums, were 1,825 – a dip of 4.8 per cent from April.

More public and private residential units are in the pipeline, with the Government bringing forward Build-to-Order projects and releasing more land to developers under the Government Land Sales (GLS) programme.

Jones Lang LaSalle head of research (South-east Asia) Chua Yang Liang said: “Given the kind of supply conditions in the public housing market and the policy that may be introduced, there is a chance that some of these marginal or fringe buyers in the private housing market – particularly those in the mass market (or) upgraders market – may choose to move back to public housing.”

Analysts from Colliers International and Jones Lang LaSalle reckon that private home sales this month will moderate to between 800 and 1,200.

Colliers International director of research and advisory Chia Siew Chuin noted that buyers are “becoming increasingly price-sensitive amid strengthening prices”.

Said Ms Chia: “They are expected to be more selective and cautious in their property purchases going forward, with some likely to prefer waiting for clearer direction on possible policy changes from the Government,”

A total of 1,215 units were launched last month, plunging 41 per cent from 2,055 units in April.

The most expensive property sold last month was The Marq on Paterson Hill, where a unit was sold at a median price of S$5,842 dollars per sq ft (psf).It broke the previous Central Core Region high of S$5,600 psf.

The best selling private residential development was Terrasse at Terrasse Lane – it sold 184 units at a median price of S$994 dollars psf.

Source : Today – 16 Jun 2011

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