25-02-2012, 08:35 AM
The Straits Times
Feb 25, 2012
Boom in home launches in first 2 months of year
Number of units released could exceed that of same period last year
By Cheryl Lim
PROPERTY buyers have been spoilt for choice this year with a wide array of new homes launched, and there is plenty more to come in the months ahead.
There were 2,199 homes released last month - this excludes executive condominiums - and while this month will not be as robust, experts expect the numbers will still be high.
That means the total number of new homes released in the first two months of this year could exceed the 2,956 launched in the same period last year.
There is talk that developers are keen to launch projects to cash in while prices are still buoyant and not too badly affected by sentiment over December's new stamp duty, which has hit foreign buyers hard.
Agents are keenly marketing several projects which could contribute thousands of new homes in coming months.
These include The Hillsta at Choa Chu Kang, Seletar Park Residence at Seletar, and The Seahill at West Coast.
Experts say the large number of new homes on the market this year can be attributed in part to the Government's effort to push out more land for residential property development.
'The process of buying a site and getting the future project launch-ready can take a few months and so the number of new projects that are springing up is a delayed reflection of the supply of state land that was released for sale last year,' said Mr Tan Kok Kiong, head of research at OrangeTee.
Last year, enough state land was put on sale to build 17,510 new homes, well up from the then record of 13,945 new homes in 2010.
These figures are based on government estimates, and analysts note that the trend for smaller flats means the overall number of homes developed on this land could be higher than anticipated.
Confidence in the global economy has also contributed to the release of new homes.
Last month's numbers were lifted by the release of several large projects, said Mr Ku Swee Yong, chief executive of International Property Advisor.
Developments such as Watertown in Punggol released all of its 992 units last month, while Parc Rosewood at Woodlands contributed 236 apartments.
This month has featured plenty of launches, but they have tended to be smaller projects such as Guillemard Edge, so overall sales are likely to be down on last month.
The additional buyer's stamp duty is one potential speed bump for the market.
Mr Alan Cheong, associate director of research and consultancy at Savills Singapore, said the duty has deterred foreign buyers and affected overall buyer demand significantly.
'That leaves the rather limited pool of Singaporeans and permanent residents who are in the race to buy,' he said.
Other issues, national and global, could also affect the local market, noted Mr Ku.
'Demand may wane, even if prices hold steady, especially if issues like unemployment, further global uncertainty or a raise in mortgage rates come about,' he noted.
Some experts have cautioned against reading too much into the number of new homes launched.
They said that some developers may only report on their launched units after they have tabulated the number sold, allowing them to create a more positive impression of a project's launch.
cherlim@sph.com.sg
Feb 25, 2012
Boom in home launches in first 2 months of year
Number of units released could exceed that of same period last year
By Cheryl Lim
PROPERTY buyers have been spoilt for choice this year with a wide array of new homes launched, and there is plenty more to come in the months ahead.
There were 2,199 homes released last month - this excludes executive condominiums - and while this month will not be as robust, experts expect the numbers will still be high.
That means the total number of new homes released in the first two months of this year could exceed the 2,956 launched in the same period last year.
There is talk that developers are keen to launch projects to cash in while prices are still buoyant and not too badly affected by sentiment over December's new stamp duty, which has hit foreign buyers hard.
Agents are keenly marketing several projects which could contribute thousands of new homes in coming months.
These include The Hillsta at Choa Chu Kang, Seletar Park Residence at Seletar, and The Seahill at West Coast.
Experts say the large number of new homes on the market this year can be attributed in part to the Government's effort to push out more land for residential property development.
'The process of buying a site and getting the future project launch-ready can take a few months and so the number of new projects that are springing up is a delayed reflection of the supply of state land that was released for sale last year,' said Mr Tan Kok Kiong, head of research at OrangeTee.
Last year, enough state land was put on sale to build 17,510 new homes, well up from the then record of 13,945 new homes in 2010.
These figures are based on government estimates, and analysts note that the trend for smaller flats means the overall number of homes developed on this land could be higher than anticipated.
Confidence in the global economy has also contributed to the release of new homes.
Last month's numbers were lifted by the release of several large projects, said Mr Ku Swee Yong, chief executive of International Property Advisor.
Developments such as Watertown in Punggol released all of its 992 units last month, while Parc Rosewood at Woodlands contributed 236 apartments.
This month has featured plenty of launches, but they have tended to be smaller projects such as Guillemard Edge, so overall sales are likely to be down on last month.
The additional buyer's stamp duty is one potential speed bump for the market.
Mr Alan Cheong, associate director of research and consultancy at Savills Singapore, said the duty has deterred foreign buyers and affected overall buyer demand significantly.
'That leaves the rather limited pool of Singaporeans and permanent residents who are in the race to buy,' he said.
Other issues, national and global, could also affect the local market, noted Mr Ku.
'Demand may wane, even if prices hold steady, especially if issues like unemployment, further global uncertainty or a raise in mortgage rates come about,' he noted.
Some experts have cautioned against reading too much into the number of new homes launched.
They said that some developers may only report on their launched units after they have tabulated the number sold, allowing them to create a more positive impression of a project's launch.
cherlim@sph.com.sg