Tag Archives: The Panorama

Home buying momentum remains despite slower sales

Posted on 16 Feb 2016 | Comments Off on Home buying momentum remains despite slower sales

Sales of new private homes in Singapore fell 16 percent to 322 units in January this year from the 384 units sold in December 2015, according to latest data from the Urban Redevelopment Authority (URA).

Including executive condominiums (ECs), developers sold 478 units in January, down from 508 units previously.

Year-on-year, developer sales (excluding ECs) dropped 14 percent from the 376 units sold in January 2015.

Despite the drop in sales, analysts believe that there continues to be traction in the market.

“There is still a momentum that’s underpinned by genuine buyers looking to buy a home for owner-occupation. Buyers are steadily picking up previously launched projects – both private homes and ECs,” said CBRE’s Desmond Sim, Head of Research Singapore & Southeast Asia.

“Despite the fact that there have been no new EC launches for the past three months, the market registered EC sales of an average of 155 units. Developers have been drip feeding the private home market with units of previously launched projects.”

The top-selling private residential projects in January were The Poiz Residences, Kingsford Hillview Peak, Sims Urban Oasis, Botanique at Bartley and The Panorama, revealed JLL, which attributed their better sales performance to their proximity to MRT stations and amenities.

For ECs, the better performing projects were The Amore, CDL’s The Brownstone, and The Vales.

Looking ahead, Ong Teck Hui, National Director, Research & Consultancy at JLL, reckons that the biggest immediate threat to stability in the residential property sector is the volatility in the stock market.

“As the volatility continues, a soft landing for the private home market in 2016 appears less likely. Buyers would become more cautious and developers would be less confident in launching new projects.”

He noted that the correlation between the stock market and the residential market can be significant, as seen during the last global financial crisis (GFC) when the stock market plunged 62 percent between October 2007 and March 2009, and developer sales dropped 71 percent to 4,264 units in 2008 from 14,811 units in 2007.

“While current financial market conditions are considered less severe than the GFC, continued volatility in the stock market is still likely to have an adverse impact on the residential market,” added Ong.

Advertisement

Comments Off on Home buying momentum remains despite slower sales

Posted in Property Market / Real Estate

Tagged , , , , , , , , , , , , , ,

Home prices to remain depressed in 2016

Posted on 17 Dec 2015 | Comments Off on Home prices to remain depressed in 2016

While no major correction is expected next year, analysts believe that several factors from oversupply to lending curbs will keep prices of executive condominiums (ECs) and private homes depressed, reported The Straits Times.

Knight Frank Singapore research head Alice Tan expects new home prices to drop by three to five percent in 2016, while projects with many unsold units may lower prices even more.

ECs have seen average prices fall from a high of more than $800 psf in H1 2015 to $780 psf in H2 2015, noted R’ST research director Ong Kah Seng, adding that average prices of ECs could drop next year to $750 to $780 psf.

With around 24,000 new unsold units in the market, remnant stock is a major issue plaguing the private residential market. Aside from this, developers are also under increasing pressure to move units due to the Additional Buyer’s Stamp Duty (ABSD) and Qualifying Certificate penalties, he said.

Developers have been slashing prices all year as market realities start to bite. The Panorama, for instance, saw median prices fall to $1,226 psf in October from $1,343 psf during its initial launch in January last year, revealed OrangeTee research manager Wong Xian Yang.

Prices at Sims Urban Oasis also slipped to $1,285 psf in October from $1,397 psf during its February launch.

Clearly, buyers affected by both the ABSD and Total Debt Servicing Ratio (TDSR) have become more selective nowadays.

But while new private home sales were lower this year, the unsold stock has also been decreasing. Knight Frank’s Tan said there were 24,149 unsold units in Q3 this year, down 18 percent from Q3 2014 and 25 percent lower than in Q3 2013.

“The adjustment of prices, albeit at a moderate level from about two to three percent discount, coupled with pent-up demand, especially from local home buyers, has helped improve take-up rates in the last two quarters,” she said.

Over in the resale market, the year’s top five projects saw prices drop by six to 11 percent from 2013, though prices increased at one of the developments, said OrangeTee.

Despite the rise in resale volumes, Wong expects rentals to remain soft due to the limited growth in foreign labour and many completions expected next year.

Century 21 chief executive officer Ku Swee Yong said EC developers may become more desperate to move units in projects where there are over 300 unsold units, like at The Criterion, The Terrace and Sol Acres.

“The raised income ceiling of $14,000 (earlier this year) does not seem to have brought in many buyers,” he said.

Comments Off on Home prices to remain depressed in 2016

Posted in Property Market / Real Estate

Tagged , , , , , , , , ,