16-01-2013, 07:41 AM
The Straits Times
www.straitstimes.com
Published on Jan 16, 2013
30% jump in Dec private home sales
By Esther Teo Property Reporter
STRONG new private home sales last month have capped off a record year for developers - and may have prompted the latest government cooling measures.
Sweeping aside the traditional year-end lull, buyers snapped up 1,410 homes last month, 30 per cent more than in November, according to Urban Redevelopment Authority data out yesterday.
This brings the full-year total to a record 22,290 units sold, easily eclipsing the record of 16,292 sold in 2011.
Including executive condominium (EC) units, 2,259 homes were sold last month. A record 5,115 EC units were also sold last year.
Experts say the strong sales and benchmark prices set at some projects last month may have contributed to the latest measures announced last week. The Government would likely have had an indication by the start of this month on how December's sales figures were shaping up.
Mr Nicholas Mak, head of research at property consultancy SLP International, said the Government takes account of the whole market performance including buying sentiment at showflats.
"There is a ripple effect when new launches do very well and so some of the successful launches with benchmark prices set in December might have factored into its decision of introducing measures," he added.
City Developments' city fringe project Echelon, next to Redhill MRT station, for instance, sold 331 units at a median $1,768 per sq ft (psf) in December. Prices at the 508-unit project went as high as $2,382 psf last month.
Knight Frank research head Png Poh Soon said the rebound in sales volume reflects the continued robustness of the residential market. But this could also be partly attributed to the higher number of launches last month compared with the month before.
A new 15 per cent tax imposed on foreigners buying properties in Hong Kong also diverted some of the buying interest to the market here, where the additional buyer's stamp duty last month was only 10 per cent, he added.
Despite the strong sales, the estimated value of 2012 total sales was only $25.56 billion, CBRE said. While that is 27 per cent higher than in 2011, it is still a shade below 2010's total of $25.65 billion, due to the large number of compact units sold last year.
Mr Joseph Tan, CBRE's executive director of residential services, noted that while January typically records fewer sales, there might be "slightly higher sales" this month as showflats extended their opening hours before the measures kicked in to facilitate last-minute purchases.
"The market will take some time to find its ground in the next half of this year. Sales volume will find new levels and projects which have received approval will go on the market as planned."
The line-up of new launches includes Sennett Residence in Potong Pasir and Urban Vista in Tanah Merah.
Suburban homes saw the most sales last month with 620 homes sold. The segment was followed closely by city-fringe homes which moved 527 units, while city-centre homes found 263 buyers.
esthert@sph.com.sg
www.straitstimes.com
Published on Jan 16, 2013
30% jump in Dec private home sales
By Esther Teo Property Reporter
STRONG new private home sales last month have capped off a record year for developers - and may have prompted the latest government cooling measures.
Sweeping aside the traditional year-end lull, buyers snapped up 1,410 homes last month, 30 per cent more than in November, according to Urban Redevelopment Authority data out yesterday.
This brings the full-year total to a record 22,290 units sold, easily eclipsing the record of 16,292 sold in 2011.
Including executive condominium (EC) units, 2,259 homes were sold last month. A record 5,115 EC units were also sold last year.
Experts say the strong sales and benchmark prices set at some projects last month may have contributed to the latest measures announced last week. The Government would likely have had an indication by the start of this month on how December's sales figures were shaping up.
Mr Nicholas Mak, head of research at property consultancy SLP International, said the Government takes account of the whole market performance including buying sentiment at showflats.
"There is a ripple effect when new launches do very well and so some of the successful launches with benchmark prices set in December might have factored into its decision of introducing measures," he added.
City Developments' city fringe project Echelon, next to Redhill MRT station, for instance, sold 331 units at a median $1,768 per sq ft (psf) in December. Prices at the 508-unit project went as high as $2,382 psf last month.
Knight Frank research head Png Poh Soon said the rebound in sales volume reflects the continued robustness of the residential market. But this could also be partly attributed to the higher number of launches last month compared with the month before.
A new 15 per cent tax imposed on foreigners buying properties in Hong Kong also diverted some of the buying interest to the market here, where the additional buyer's stamp duty last month was only 10 per cent, he added.
Despite the strong sales, the estimated value of 2012 total sales was only $25.56 billion, CBRE said. While that is 27 per cent higher than in 2011, it is still a shade below 2010's total of $25.65 billion, due to the large number of compact units sold last year.
Mr Joseph Tan, CBRE's executive director of residential services, noted that while January typically records fewer sales, there might be "slightly higher sales" this month as showflats extended their opening hours before the measures kicked in to facilitate last-minute purchases.
"The market will take some time to find its ground in the next half of this year. Sales volume will find new levels and projects which have received approval will go on the market as planned."
The line-up of new launches includes Sennett Residence in Potong Pasir and Urban Vista in Tanah Merah.
Suburban homes saw the most sales last month with 620 homes sold. The segment was followed closely by city-fringe homes which moved 527 units, while city-centre homes found 263 buyers.
esthert@sph.com.sg