Mar 29, 2011

Between 3,200 and 3,400 private homes were sold in Q1, down 20 to 25 percent from the 4,241 units sold in Q4 last year, according to CB Richard Ellis (CBRE).

The commercial property services firm said that home prices in the first quarter remained stable, as the cooling measures implemented on 13 January “rationalised (the) residential market”.

Some of the developments that attracted buyers in the first quarter were projects located near existing or future Mass Rapid Transit (MRT) stations, as well as in places earmarked as potential growth areas. For instance, 90 percent (around 251) of the units were sold at Spottiswoode 18, which is adjacent to Tanjong Pagar Railway. Canberra Residences, which is within walking distance to Sembawang MRTstation, were nearly 75 percent sold, at an average price of S$830 psf.

Meanwhile, activity in the high-end market remained subdued, as property players waited for the right opportunity to enter. Isolated units from various luxury projects were sold, with top-line prices achieved by a unit of The Orchard Residences at S$4,258 psf, as well as three units of Scotts Square at between S$4,119 psf and S$4,646 psf. A joint venture (JV) partnership between Lippo Group and CLSA Capital Partners also sold the remaining 14 units at the 26-unit The Holland Collection, at around S$50 million. This worked out to nearly S$1,600 psf for the collection of two-, three- and four-bedroom apartments.

CBRE also said that since the return of the executive condominium (EC) in October 2010 after a five-year hiatus, some 1,580 ECs have been sold, comprising 71.9 percent of the 2,199 EC units launched. Small-format units also remained popular among homebuyers in Q1, with Loft@Holland, Loft@ Stevens and Palmera East being fully sold at an average price of S$2,100 psf, S$1,960 psf and S$1,255 psf respectively.

Developers showed confidence in the market with their keen purchases of sites in Q1; the most contested site under the GLS programme was a condo site at Bishan Street 14. It was acquired by CapitaLand for S$550.1 million. The company also acquired the 51,185 sq ft Marine Point site for S$100.68 million (S$1,056 psf ppr), while Novelty Group successfully acquired Newton View for S$147.60 million (approximately S$1,403 psf ppr).

“Moving on to the second quarter, some of the new launches to be expected are Hedges Park at Flora Drive, The Boutiq at Killiney Road, a condominium at Upper Thomson Road and Phase 5 of Luxus Hills landed project,” said Mr. Joseph Tan, Executive Director for Residential at CBRE.

“Assuming a stable economy and that the market moves at the same pace as the first quarter, new home sales volume will be around 3,000 to 3,500 units in Q2 2011, with no significant fluctuations in home prices.”

Info courtesy - PropertyGuru