2010 is shaping up as a banner year for Singapore real estate, with a double digit price gain projected for private home completions, following a recent spike in developer sales. The market is likely to lose some momentum though, as steeper prices are encouraging greater selectivity among buyers. See the following article from Property Wire to learn more.
Sales of private homes by developers in Singapore surged 82% month on month between June and July, the latest figures to be published reveal.
But transactions are expected to fall back again this month as the market enters a slower period although overall 2010 is already being described as a good year for real estate.
In the first seven months of this year, developers have sold 9,957 private homes, excluding executive condos, following on last year’s strong sales of 14,688 units.
Global real estate consultants CB Richard Ellis expects the full year figure to be about 14,000 units, Jones Lang LaSalle’s estimates sales of 13,000 to 14,000 units while DTZ’s SE Asia research head Chua Chor Hoon puts the number at 13,000 to 15,000 units.
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‘The outlook still remains positive against the backdrop of Singapore’s economic growth and the low interest rate environment but buyers will be more selective given that so many Government Land Sale sites are being sold. This will translate to greater choice of new projects,’ said Hoon.
‘Prices have also been on the rise, so potential buyers will be more discerning in picking properties that have better potential for rental income or capital appreciation,’ she added.
DTZ’s data shows that secondary market prices of completed private homes appreciated about 6 to 8% in the first half of this year and Hoon expects prices to rise by up to 13% by the end of the year.
B Richard Ellis executive director (residential) Joseph Tan believes that prices are probably high enough and developers are unlikely to increase them but price reductions to tempt new buyers are unlikely as land prices remain high.
But there are signs of buyers being put off by high prices. Figures from the Urban Redevelopment Authority suggest that more buyers are opting to purchase in the $1,500 per square foot sector and sales reached their highest level in 10 months in July at 88%.
But luxury properties are still selling. The most expensive apartment/condominium unit sold by a developer in July was a unit at Boulevard Vue which fetched $4,600 per square foot. URA’s data shows that other high end deals last month included a unit at The Orchard Residences which sold at $4,099 per square foot.
Developers launched 1,335 private homes in July, up from 1,010 units in June.
This article has been republished from Property Wire. You can also view this article at Property Wire, an international real estate news site.