Sales of new private residential units plunged almost 50 percent in February 2015 from a year ago, according to media reports citing data from the Urban Redevelopment Authority (URA).
Only 382 units were moved by home builders last month, down significantly from the 739 units sold in February 2014.
On a month-on-month basis, February’s sales improved slightly compared to the 374 units sold in January this year.
Fewer projects were also launched last month with 372 units released to buyers compared with January’s tally of 421 units.
Experts feel the private housing market is still weighed down by the effects of the cooling measures, including the Total Debt Servicing Ratio (TDSR) framework.
According to URA, prices as well as the number of units sold during the month are based on the Option to Purchase (OTP) issued by developers to buyers and reported to URA. Not all OTPs result in confirmed sales.
An OTP is a right or option given by the vendor to an intending purchaser to buy the property at a specified price within a specified period of time – the validity period of the option. The intending purchaser must pay a booking fee of between 5.0 – 10 percent of the agreed price for this right or option. The purchaser has to exercise the OTP within its validity period if he decides to buy the property.
Romesh Navaratnarajah, Singapore Editor at PropertyGuru, edited this story. To contact him about this or other stories email romesh@propertyguru.com.sg
