Property market likely to weather cooling measures

The launch of a residential project in Sembawang over the weekend has been met with strong response, confirming expectations that the property market will weather the recent round of government cooling measures.

Analysts said more launches are likely over the next two months to make up for the lull during the Chinese New Year period and homebuyers will be spoilt for choice.

They added that developers were likely to speed up the sale to avoid getting blindsided by further cooling measures.

One of the latest properties to be unveiled after the Chinese New Year is Canberra Residences from MCC Land, which is a unit of Chinese state-owned enterprise Metallurgical Corporation of China (MCC Group). Launched over the weekend, the Sembawang condominium sold 200 units, more than 60 per cent of the 320 put up for sale.

And Far East Organization broke the Chinese New Year tradition of staving off property launches over the festive period. The developer released 59 units of the Waterfront Isle for sale on the Saturday of the Chinese New Year period itself. It exceeded market expectations, selling 37 of the 59 units offered that day.

NIN Residences by Chinese developers Qing Jian Realty was launched late last week as well. Other properties expected to be unveiled soon are Okio Residences by SDB Asia and another Far East property, The Cape.

Analysts said enthusiasm among buyers for Canberra Residences and Waterfront Isle is good news for developers.

“Developers will take heart from this and will go full steam ahead with other launches. The market has weathered another round of cooling measures and they are taking this time to secure as much demand as they can from the market,” said Mr Colin Tan, head of research and consultancy, Chesterton Suntec International.

Source : Today – 14 Feb 2011