STRONG LIQUIDITY, LOW INTEREST RATES BOOST PRIVATE HOME SALES
Private residential home sales this year have been fuelled by strong liquidity and low interest rates, with the take-up of new homes in the fourth quarter estimated at 3,600 to 4,000 units.
Joseph Tan, executive director for residential at CB Richard Ellis (CBRE), said: “Projects located close to MRT stations remain popular among homebuyers. Besides location, other selling points include government plans for future development and new transport network, amenities, tenure and product attributes.”
Some of the new projects in Q4 which attracted good response were The Glyndebourne and Spottiswoode Residences, which were 89 percent and 92 percent sold, respectively.
The executive condominium (EC) market also returned in Q4 following a five-year hiatus, with three EC projects supplying 1,659 units to the sandwiched class.
With the strong take-up of new homes in Q4, total sales will likely reach 15,500 to 16,000 for the whole of 2010, higher than the earlier record sale of 14,811 units in 2007.
Based on the caveats lodged, the total transaction volume for homes sold till November this year was $16.98 billion, 29.6 percent lower than the $24.11 billion in 2007.
The lower value of transactions this year could be attributed to a higher number of small-format units sold compared to 2007, said CBRE.
Meanwhile, the URA private residential price index, which already rose by 14.4 percent in the first three quarters, will likely register a marginal upside in Q4, translating to a total increase of 15 percent to 16 percent for the whole year.
“Overall, prices for prime, mid-tier and mass-market homes have more or less caught up with the peak levels in end-2007. However, prices of new luxury properties were still lagging behind by around 15.0 per cent,” said Mr. Tan.
Looking ahead, Mr. Tan expects the
Info courtesy - Propertyguru