Property consultancy group CB Richard Ellis said that resale contracts of non-landed private homes in districts 1 and 2 – which cover the country’s financial district – and district 4 – which includes Keppel Bay, Sentosa Cove and Harbourfront areas – reached $750.8 million for the whole of 2009.
This is below the 2007 peak of $2.08 billion, but higher than the $737.8-million average annual resale level between 2005 and 2008 for the sites.
So far this year, the figure is $470.2 million, according to the URA Realis caveats data as of May 26.
“The buzz created by the integrated resorts and emerging prime office hub will ensure sustained activity in the resale market,” said Joseph Tan, executive director (residential) of CBRE.
Resales refer to secondary market deals of completed projects, defined as projects that have acquired Certificate of Statutory Completion.
Districts 1 and 2 include Shenton Way, Marina Bay and the Tanjong Pagar belt.
“New residential projects in Sentosa Cove over the coming months will also further transform Sentosa into a lively residential enclave and this will continue to drive resale activity there. Apartments in the inner city and Sentosa will be sought after by investors and owner-occupiers alike due to their potential for high appreciation in value and attractive rental yields,” added Mr. Tan.
CBRE predicted that by 2013, about 1.3 million sq ft of office space in the Central Business District will be converted to residential use.
Some 246 non-landed private homes have been bought in the resale market in districts 1, 2 and 4 this year, or about 51-percent of the 482-unit resale volume for the whole of 2009.
In 2009, the most popular development in the resale market included Caribbean @ Keppel Bay with 200 units sold, followed by The Sail @ Marina Bay with 128 units sold.