SG Property Outlook/New Property Launches in 2010

The Business Times today reported that on a yearly basis, 2009 saw the second highest number of new private home sold. Developers sold around 14,500 new homes last year – second only to the record take-up of 14,811 units in 2007.

However, caveats lodged show that the total value of the homes sold is only around 60% of that in 2007, in spite of the high volume of new sales last year. The lower quantum was attributed to the dominance of mass-market and mid-tier homes that were sold in 2009, compared to 2007 when high-end homes stole the limelight.

But this is expected to change in 2010. Analysts reckon that the take-up in 2010 will moderate to 8,000 – 10,000 units. But the activity is expected to move into the high-end luxury segments.

Over the last year, prices of mass and mid-range private homes have caught up with and even surpassed that seen during the previous peak. But for the high-end /luxury segment, prices are still some way off their peaks. This ranges from 19% (Goldman Sachs) to 25-30% (Savills Singapore). Goldman Sachs expect high-end prices to rise by 10-15%, while Savills are even more bullish – they are confident that high-end/luxury prices will move as much as 30% over the next 12-24 months.

The paper also provided a list of possible launches in 2010:
New Launches 2010
It sure looks like another busy year of showflat viewing for yours truly and the wife!