Private home sales to ease in February

Encouraged by the strong take-up of properties in January, property developers of mass-market residences will likely continue the launch momentum this month, according to Colliers International.

The consultancy said it is also advantageous for developers to proceed with their launches instead of opting for a later date, when home prices may come under pressure due to buyers’ cautious sentiment, an uncertain economic outlook and sufficient land supply for new homes.

Meanwhile, property market activity in the Core Central Region (CCR) and Rest of Central Region (RCR) has been forecasted to remain low.

Demand is expected to be supply-driven, depending on the location and the product. Developments with reasonable pricing and unique selling points could be well received. Nonetheless, prospective buyers will most likely remain price-sensitive and prudent, noted Chia Siew Chuin, Director of Research & Advisory at Colliers International.

“Hence, buying decisions could be stalled on the back of downside risks and buyers’ general tendency to hold back for price corrections. Hence, developers’ launch and sales volumes are expected to ease from January’s level to hover around 1,000 units in February 2012,” she said.

Li Hiaw Ho, Executive Director at CBRE Research, believes that the sale of mass-market projects will continue to be healthy. Property developers will remain innovative in terms of the lifestyle option for new developments, while offering more discounts to negate the additional buyers’ stamp duty (ABSD).

“Forthcoming new launches include Bartley Residences, Seletar Park Residence, Palm Isles and Sky Habitat,” he added.

Source : Channel NewsAsia – 1 Feb 2012

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