The number of Singapore buyers choosing to return their private property units has been rising throughout 2013, although there seems to be a variety of reasons why people opt to forfeit 1.25 percent of the purchase price.
Last month saw 97 units returned to developers according to published data from SquareFoot Research. That number, although high, remained below the April year-to-date record of 152 units.
According to the study, the project seeing the highest number of returned units was Stratum with 18, although the developer denied that number was correct, adding that a total of 16 units were returned over the course of a two-month period – and a further two units were exchanged.
The developer suggested that buyers may have taken the decision to return their units for a variety of reasons, including changing their minds and opting for a more suitable unit, or realising they would be unable to obtain financing for their purchase.
Other developments seeing multiple returned units last month, according to the research, included The Lanai (2), Canberra (5), La Fiesta (2), Jade Residences (2), Midtown Residences (5), Cambio Suites (2), Whitehaven (4), Newest (6), Twin Fountains (6), Corals at Keppel Bay (9) and Kap Residences (7).
Seven units were also returned by buyers of CityLife@Tampines.
A spokesperson for the developer told PropertyGuru: “All seven units which were returned happened because the buyers subsequently discovered they did not meet the qualifying criteria to buy an executive condo under current Housing Development Board (HDB) rules.”
The spokesperson added that all seven had since been sold to other buyers.
Far East Organization’s luxury development Ferra also saw three units returned during June, with a spokesperson clarifying: “I can confirm that the number of Ferra units sold as of mid-May was 8. As of July 29 the number of Ferra units sold is five.”
The spokesperson declined to provide further details or reasons why units were returned.
SquareFoot’s Research shows a direct correlation between property prices and the number of returned units for more than five years, although no official data exists for the precise numbers, or reasons they are being forfeited.
Property Guru – 30 Jul 2013