Q2 home sales volume to hit 4,000 units

Singapore's property market will see a strong second quarter this year with the new home sales volume expected to hit 4,000 units.

According to CB Richard Ellis, this would make it 11.3% higher than the 3,595 new homes sold in the first quarter and close to the 4,241 units sold in the fourth quarter of 2010.

CBRE said the top five projects which have contributed to the primary sales volume so far are Eight Courtyards, Hedges Park, Foresque Residences, Terrasse and Foresta@Mount Faber.

With the exception of Foresta, the other four projects were priced between $790 and $1,200psf to cater to first-timers and upgraders.

Caveat data to date from the URA show a median price of about $1 million for new homes sold in the first half of this year, down from around $1.2 million a year ago during the same period.

The median size for units sold in the first two quarters was below 900sqft while those sold in the year ago period was below 1,200sqft.

It is probable that a majority of buyers are able to service their debt comfortably for a residential property up to $1 million.

Another reason could be the 60% loan-to-value ratio for home buyers with an existing loan.

In the executive condominium (EC) market, the 315-unit Belysa on Elias Road was launched in April at the average price of $670psf.

This translates to a 21% price gap between Belysa and NV Residences, the private condominium beside it.

The price gap accounts for the eligibility conditions and minimum occupation period tied to ECs.

Residential prices and rents in the second quarter remained relatively stable, unchanged from the previous quarter.

CBRE's Executive Director for Residential, Joseph Tan said one reason for this could be the awareness of rising costs and increased home prices, which may be prompting home buyers to look to smaller sized units.

With the government's plan to release more HDB flats and land for private homes in the second half of this year, Tan said the take-up of new homes in the third quarter will likely be lower than the numbers in Q2.

Some of the new houses expected to be launched include Leedon Residence, Thomson Grand and two other mass-market projects located at Sengkang Square and Serangoon View, as well as an executive condominium project on Segar Road.

Source: Channel News Asia

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