DROP IN NEW PRIVATE HOME SALES
Sep 15, 2014
BREAKING NEWS: Developers sold 432 new private homes in the month of August 2014, according to fresh data from the Urban Redevelopment Authority (URA).
Month-on-month, this marks a drop from the 509 units, including executive condominiums (ECs) sold in July. Comparatively, there were 756 units sold in August 2013.
Property analysts have attributed the fall in transactions in recent times to a combination of the property cooling measures and fewer launches making it to market.
According to URA, prices as well as the number of units sold during the month are based on the Option to Purchase (OTP) issued by developers to buyers and reported to URA.
An OTP is a right or option given by the vendor to an intending purchaser to buy the property at a specified price within a specified period of time – the validity period of the option. The intending purchaser must pay a booking fee of between 5 – 10 percent of the agreed price for this right or option. The purchaser has to exercise the OTP within its validity period if he decides to buy the property.
Info courtesy - Property guru