The URA monthly sales volume saw a 28 percent month-on-month decline to 911 units in September following state intervention in the previous month. Compared with the previous two sets of measures introduced on September 15, 2009 and February 20, 2010 respectively, the latest measures fell short of the first in dampening sales volume, said Jones Lang LaSalle (JLL).
Based on JLL’s analysis on the weighted sales volume 30 days before and after the intervention, the recent measures resulted in a 24 percent decline in sales volume to 921 units compared with the first slew of measures that led to a 33 percent drop to 966 units.
“The numbers suggest that the initial shock of government policies is over as the market adjusts to a stricter regulatory environment each time. In contrast with the first set of measures which are aimed at cooling the overall market, the latest measures are targeted specifically at the “double-barreled speculators” who form only a small part of the universe as shown by the smaller drop in sales volume,” said Dr. Chua Yang Liang, research head for South East Asia at JLL.
Based on the figures released by URA, the Outside Central Region (OCR) saw a 10 percent month-on-month increase in sales volume to 601 units. The Core Central Region (CCR) saw a 49 percent month-on-month decline in sales volume to 84 units in September, while for the Rest of Central Region (RCR), launches slid by 40 percent month-on month to 273 units, of which 226 units were snapped up.
The recent URA figures bring the total sales volume for the first nine months of the year to 12,307 units, which is only 6 percent below the volume reached during the same period last year, said JLL.
“Based on the better-than-expected sales reports, we can expect the full year’s sales volume to be higher than our previous projection and close the year with around 13,500 to 14,500 units,” said Mr. Chua.
Meanwhile, Li Hiaw Ho, executive director of CBRE Research, said that projects that saw good response in September were those developments in the mass- to mid-market segments, with the bestselling project being NV Residences condominium in Pasir Ris. “Home buyers bought 347 units in this development, which were marketed at a median price of $859 psf.”
About 16 units were also sold at Twin Peaks in Leonie Hill Road at a median price of $2,763 psf, said Mr. Ho, adding that this was “the first residential project to be sold on a fully-furnished basis, retrofitted with iconic designer furnishings and comes with a full-service concierge desk.”
“Even though home sales activity in September slowed down, the overall performance of Q3 2010 was good with 3,723 new homes sold and an estimated quarter-on-quarter rise of 3.1% in the residential price index. With executive condominiums (EC) dominating the residential market scene at the beginning of the fourth quarter, it is likely that new private home sales volume (excluding EC units) will moderate to 1,500-2,000 units. Home prices in the fourth quarter will likely remain stable based on the latest government report that the Singapore economy is still on track to expand by 13% to 15% in 2010,” he said.