'Cooling' back in frame as Feb home sales rise

	Business Times: Fri, Mar 16
(SINGAPORE) It seems the government's property cooling measures have lost their 'cool factor', as February marked the highest number of units sold by developers in a month since July 2009. Urban Redevelopment Authority (URA) figures reflected a total of 2,413 private homes - excluding executive condominiums (ECs) - being sold in the month of February. This is 29 per cent more than in January (the month that Chinese New Year fell this year) and more than double that sold in the same period last year. If ECs were added to the mix, the spike was even more impressive, with a total of 3,138 units sold in February - up 51 per cent from January's 2,077 units. The robust buying sentiment revived conjecture that the government could act again to puncture any possible property bubble in the making. It has taken several steps of late, including an additional buyer's stamp duty (ABSD), to cool the market. A Ministry of National Development (MND) spokesman confirmed that the authorities were keeping a sharp eye on the developments, saying: 'The government will continue to monitor the market closely and, if necessary, we will introduce further measures to ensure a stable and sustainable property market.' Chua Yang Liang, head of research, South East Asia, at Jones Lang LaSalle, warned: 'As a result of this strong market performance, we have elevated the policy risk but not to a level where we can expect any immediate government intervention. However, should transaction volume continue to rise unabated by March, then the risk of further measures is quite likely then.' Several factors contributed to the pick-up in February. Said Alan Cheong, director of research & consultancy at Savills (Singapore): 'The main demand driver has been low mortgage rates, which are generally below 1.5 per cent. Short of having an interest rate policy of some sort, administrative measures have not been effective in reining in the buying penchant. Unless interest rates rise very significantly, it would have little impact on demand.' Moreover, Chia Siew Chuin, director of research & advisory at Colliers International, added: 'The creative promotions and sweeteners dangled by developers in various forms to cushion the impact of the ABSD - such as part absorption of the stamp duty, price discounts, early bird or VIP preview prices, as well as furniture and fit-out vouchers - have also encouraged homebuyers to commit.' Sales of ECs (a type of hybrid public-private housing) also soared, with 725 units sold in February, more than treble the 205 units in January and almost six times the volume sold in the year-earlier period, making it the highest monthly figure since the resumption of EC sales in October 2010. Credo Real Estate executive director Ong Teck Hui said: 'The increased demand for ECs was expected especially after the income ceiling for it was raised last August, resulting in a larger pool of eligible buyers.' Top-selling projects for the month included Parc Rosewood (380 units sold at $994 psf median price), Guillemard Edge in Geylang (275 units sold at $1,215 psf median price) and Watertown at Punggol (182 units sold at $1,341 psf median price). Notably, Guillemard Edge - which sold all the units that were released - was one of the new launches during the month, together with other developments such as Bartley Residences and Casa Cambio. Among ECs, Twin Waterfalls at Punggol was the most well received with 257 units sold at a median price of $727 psf. The most expensive unit sold by a developer for the month was an apartment at Scotts Square, which transacted at $4,661 psf. However, Mohammed Ismail, CEO of PropNex Realty, highlighted that the sales volume of such luxury homes continues to remain low with only 11 units priced above $2,500 psf being sold in February, putting sales in the high- end bracket at a 'standstill'. 'The demand in the city centre is expected to remain subdued as it has a higher proportion of foreign buyers compared with suburban areas,' commented Mr Ismail. Much of the action was in the mass-market outside core region (OCR), with 1,830 units being sold in the month compared with 1,761 in the month before. This was despite the fact that the number of OCR units released by developers fell 21 per cent month- on-month to 1,567 in February. Some 56 units were sold in the core central region (CCR) and 527 in the rest of central region (RCR). The number of units launched but unsold has also risen steadily since last October - when it stood at 5,922 - to 7,586 in February. Some consultants feel that with an increasing pipeline of projects rolling out in the months to come, demand could potentially continue to chase supply. This may result in the return of en bloc sales and reignite foreigner purchases. Upcoming launches include Allgreen's 928-unit Riversails in Sengkang and MCL Land's 679-unit Ripple Bay in Pasir Ris. Source: Business Times
Record 3,138 new homes sold last month	Straits Times: Fri, Mar 16
BUYERS shrugged off tough new cooling measures and an uncertain economic outlook to snap up a record 3,138 new private homes last month. The record number includes 725 executive condominium (EC) units - the highest monthly figure since EC sales resumed in October 2010. Take those out and last month's sales number falls to 2,413 homes - second only to the 2,772 non-EC private units sold in July 2009. Transactions shot up last month after developers launched a string of projects, putting far more homes up for grabs than in January and far ahead of the drought in December when the latest round of cooling measures kicked in. That rush of new supply ignited the market and sent sales soaring above the already robust level of 2,077 in January. But the large number of projects in the market meant that the number of launched but unsold units also hit an all-time high of 7,586. Last month's uptick was mainly from the city fringe, where sales increased more than fivefold compared with January, while suburban home sales of 1,830 units held firm. Mass market sales made up more than 75 per cent of the market. Experts said developers are building on January's strong sales momentum and launching projects while buying sentiment is still positive. Low interest rates, the flush of liquidity in the market and the lack of alternative investments also continue to support new home sales. When asked at a leadership talk yesterday to comment, CapitaLand chief executive and president Liew Mun Leong noted that the underlying demand for homes was still strong. 'If you look at the statistics, the last five to six years, there was an increase of 320,000 people but the increase in completed homes was only 73,000, so there is still a gap between actual demand versus what is available.' Mr Alan Cheong, director of research and consultancy at Savills Singapore, said the run-up in the stock market last month could have been key in boosting sentiment although low mortgage rates remained the main demand driver. Developers also held back on launches in December, especially after the shock of the additional buyer's stamp duty, said PropNex Realty chief executive Mohammed Ismail. Developers launched almost 3,600 units last month, 35 per cent more than in January, noted Mr Lee Sze Teck, senior manager of research and consultancy at Dennis Wee Group. 'The strong buying interest was probably sparked by well-located projects and attractive pricing by developers. The buying momentum could probably continue for a few months,' he added. 'It remains to be seen whether the Government will step in with more cooling measures.' ERA Realty key executive officer Eugene Lim said one- and two-bedroom apartments that have a relatively low overall quantum of between $400,000 and $900,000 sold well. Buyers are typically investors or owner-occupiers. The top-selling projects Parc Rosewood, which moved 380 units last month at a median price of $994 per sq ft (psf), and Guillemard Edge, which sold 275 homes at $1,215 psf, both have a large number of smaller homes. Experts said that barring any unexpected events, this month's sales figures are expected to remain strong, powered again by mass-market homes. Demand in the city centre is expected to remain subdued, with only 11 homes priced above $2,500 psf sold last month. Separately, the Government released four sites for sale that can yield 2,415 homes this month. These consist of two EC sites in Woodlands Avenue 5 and Tampines Central 7, launched yesterday, that can yield about 1,300 housing units. Another two sites in Tampines Avenue 10 - one on the confirmed list and the other on the reserve list - will be launched for sale on March 28. A total of 1,115 homes can be built on them. [e-mail] Source: The Straits Times