The number of subsales in the second and third quarters of 2009 is among the six largest quarterly figures since 1995. This reflects the upsurge in the subsale activity, which led the Singapore government to announce measures on September 14 to control property prices.
The completion of a number of condominiums this year has helped to enhance their demand in the subsale market. Many of which are large projects, near new projects launched recently or close to MRT stations.
In addition, this year’s increase in prices of private homes has provided incentives to various sellers, aiding them to unleash units purchased earlier.
Analysis by Savills Singapore, captured by URA’s Realis system on November 17, showed that a total of 1,249 caveats were lodged in Q3 2009 for subsales of private condos and apartments, a bit below the Q2 caveat of 1,300.
Since 1995, during the commencement of Realis caveats database, four other quarters had been recorded when subsales of apartments or condos exceeded the 1,000 mark, particularly during the property market highs in 1996 and 2007.
Subsales hit 1,857 in Q2 2007 and 1,534 in Q3 2007; subsales in Q1 and Q2 1996 were 1,238 and 1,650, respectively.
The leading projects in subsales charts during the second and third quarter of 2009 had generally been launched in the past few years and many of which were completed this year. Some of these projects are: Casa Merah near Tanah Merah MRT Station, Rivergate in the Robertson Quay area, The Metropolitan Condo in the Alexandra Road area, City Square Residences along Kitchener Road, Botannia in West Coast and The Centris in Jurong.
“If they bought their properties with the intention of leasing them out and if they find today’s rental market challenging, it may make sense to simply cash out, especially if they can make a profit,” said Tan Tiong Cheng, chairman of Knight Frank, giving a seller’s perspective.
The lists by Savills of the most popular projects in the subsale market in the second and third quarters of 2009 did not include developments that were launched this year, except The Quartz, which was relaunched this year.
“Those who bought projects launched this year would find it harder to flip because their entry price may already be very high,” said Landmark Property Advisers’ owner, Lee Hon Kiun.
Indonesians were noted as the leading buyers in the subsale market between 2007 and the first 10 months of 2009. They were followed by Malaysians, mainland Chinese, Indians and UK nationals.