Tag Archives: Market Report

Property consultant DTZ said sales of private homes here this year are likely to be higher than the record of 14,800 units sold in 2007.

In a report, DTZ said there was a “frenzied” level of activity seen in the third quarter this year.

That led to a record number of more than 2,700 homes sold in July.

DTZ is forecasting that the record of some 5,100 units sold in the second quarter of 2007 will be surpassed in the current quarter on the back of the strong momentum.

It added that the average private home prices continued on the uptrend in the third quarter this year.

In addition, DTZ said rental values found some stability in the third quarter after four consecutive quarters of decline.

For the rest of the year, DTZ said sales volume in the private residential market is likely to ease due to fewer projects in the pipeline.

Recent measures by the government to cool the market, like the removal of the interest absorption scheme, may dampen sales too.

Source : Channel NewsAsia – 29 Sep 2009

Are the recent measures by the government to cool the property market appropriate and effective?

Pauline Goh
Managing Director
CB Richard Ellis Singapore

THE measures are aimed at cooling the market by lowering demand and increasing supply. On the demand side, the removal of the special payment schemes will effectively encourage homebuyers to reassess their cashflow position carefully before they make purchase commitments. Those who have sufficient funds only for the upfront 20 per cent downpayment and are relying on the future sale of their existing homes to help finance their new purchases may now be encouraged to hold back on newly launched projects and possibly look instead to the secondary market including projects that are close to TOP.

On the supply side, the re-introduction of the confirmed list back into the government land sales programme will provide better visibility to the market on the pipeline of future supply.

These measures should help to moderate, to more sustainable levels, the current sales momentum which has escalated since March and looks set to easily exceed the record volume of 14,811 units in 2007.

Laura Deal
Executive Director
The American Chamber of Commerce in Singapore

THE American Chamber of Commerce in Singapore just conducted its eighth annual Business Outlook Survey of US businesses across Asean. As part of this survey, companies rate their satisfaction level with aspects of the business environment of the country in which they operate. Continue reading →