The number of private homes launched and sold by developers in October plunged to their lowest levels since home sales began to bounce back in February, according to official figures released recently. While the outcome was expected, the question now is: How long will it take for the home market to get active again?
Price-sensitive mass-market buyers have been stressed out by the continuous price increases, even before the government implemented its Sept. 14 measures to calm down the market. Property developers are also running out of projects which are ready to be launched.
“Everybody’s more cautious now,” Chairman Tan Tiong Cheng of Knight Frank said, analyzing the current situation among developers and buyers.
Ong Choon Fah, executive director of DTZ, said: “Buying is likely to continue to be slow for the rest of the year. There’s not much to launch; and people are away. Activity will probably return after Chinese New Year.”
While developers are expected to launch some projects soon, others have decided to delay their launches until next year, when they see clearer signs confirming that there’s been an the economic recovery.
The data released yesterday by the Urban Redevelopment Authority (URA) showed that 811 private homes were sold in October, a 29 percent decline from September’s 1,143 home sales. This also showed a decline for the third straight month since July where home sales peaked at 2,772 units.
According to Tay Huey Ying, research director of Colliers International, there were 250 units sold last month- with a range of $1,500 psf to $2,000 psf- accounting for 31 percent of home sales in October and showing a large increase from the 92 units sold in September. “This shows that as of October, filtering-up of demand from the mass-market to the high-end has not been derailed by the September cooling measures,” she said.
Li Hiaw Ho, executive director of CB Richard Ellis, noted that high interest in luxury-segment projects continued last month despite the slowdown felt in other parts of the market. “A unit at Boulevard Vue sold at $4,150 psf; a unit of Seven Palms fetched $3,429 psf in October after six units were sold in September at $3,091 to $3,353 psf. Over at Nassim Park Residences, five units were sold last month at a median price of $3,089 psf following the sales of nine units in Q3 at $2,800 to $3,450 psf,” he said.
The top-selling project in October was Far East Organization’s Cyan project in Bukit Timah, with 81 units sold at a median selling price of $1,821 psf. Other chart toppers included Trilight with 58 units sold and Lincoln Suites with 53 units transacted. Both projects are located in the Newton area.