Bookmark & Share
Median prices of 99- year non- landed homes sold in the third quarter of this year have
increased across the board – across new, resale and sub sale markets. CBRE’s analysis of
caveats lodged show a double- digit increase of 11.0 cent in median prices of new homes, from
$825,000 ($660 psf) in the second quarter to $916,000 ($769 psf) in the current
quarter. Prices of new freehold projects also saw the same upward trend, but price swings were
skewed by the launch of high- priced projects in the prime districts.
Joseph Tan, Executive Director, Residential said “Prices of new projects are always a function of
new launches. We have seen the launch of some high quality projects with good attributes such
as those sited near MRT stations in the past three months.”
There were key performers in the various segments of the market. In the low- end segment,
which catered mainly to HDB upgraders, 294 out of 297 units of Optimah @ Tanah Merah
were sold, followed by 293 units (89.1%) of The Gale in Upper Changi and 461 units (78.1%)
of Trevista in Toa Payoh. The average prices of these three 99- year leasehold projects were
$830 psf, $720 psf and $943 psf respectively. In the mid- tier segment, all 70 units of
Airstream in St Michael’s Road and 75 out of 78 units of Luxus Hills were sold. Airstream was
priced at $1,085 psf on the average while the terrace houses of Luxus Hills were priced at $1.6
million – $1.9 million each. In the prime districts, 82 units (96.5%) of Volari in Balmoral Road,
203 units (86.4%) of Viva in Thomson and 210 units (77.2%) of Sophia Residence were sold.
Their respective average prices were $2,059 psf, $1,537 psf and $1,590 psf.
For resale leasehold properties, the median price in the third quarter was $796,500 ($668
psf), up 9.1% from the $730,000 ($593 psf) three months ago. Similarly, for sub- sales, the
median price at $992,500 ($1,032 psf) was 9.7 per cent higher than $905,000 ($869 psf) in
the previous quarter.
“These observations point to home prices having bottomed out and are on the road to
recovery, barring any unforeseen circumstances,” Mr Tan added.
HDB upgraders made up 51 per cent of new home buyers in the last eight months of this year,
compared to 44 per cent for the whole of last year. HDB upgraders have also been active in
the secondary market, making up 40 per cent of the buyers since the first quarter of this year to
date, up from the 33 per cent for the whole of last year. Interest from HDB upgraders can be
attributed to the resilience witnessed in the HDB resale market.
The top five foreign nationalities in the new home market for this year so far comprise
Malaysians, Indonesians, Chinese, Indians and Britons.
Demand for new homes may hit 5,200 units in the third quarter although the Singapore
economy is not out of the woods yet. This would make it the highest quarterly volume
registered. The next highest volume of 5,128 units sold was seen in the second quarter of
2007. In the nine months from January to September 2009, an estimated 12,450 units would
have been sold, nearly three times the 4,264 new homes sold in 2008.
HDB upgraders made up 51 per cent of new home buyers in the last eight months of this year,
compared to 44 per cent for the whole of last year. HDB upgraders have also been active in
the secondary market, making up 40 per cent of the buyers since the first quarter of this year to
date, up from the 33 per cent for the whole of last year. Interest from HDB upgraders can be
attributed to the resilience witnessed in the HDB resale market.
The top five foreign nationalities in the new home market for this year so far comprise
Malaysians, Indonesians, Chinese, Indians and Britons.
Demand for new homes may hit 5,200 units in the third quarter although the Singapore
economy is not out of the woods yet. This would make it the highest quarterly volume
registered. The next highest volume of 5,128 units sold was seen in the second quarter of
2007. In the nine months from January to September 2009, an estimated 12,450 units would
have been sold, nearly three times the 4,264 new homes sold in 2008.
Market confidence continued to strengthen as the stock market remained stable in the quarter
and government statistics showed a slight improvement in economic fundamentals. The buying
spree was partly motivated by the fear that home prices could never return to current levels
again. A third reason was the release of some long- awaited projects which saw homebuyers
soaking up most of the units within a few days of the launch.
The brisk pace of home sales was mirrored in the resale and sub- sale markets. Based on
caveats lodged, we estimate that 2,800 – 3,000 resale homes and 700 – 750 sub- sales will be
sold during the quarter. While these figures are lower than the 3,059 resale homes and 940
sub- sales sold in the second quarter, they are much higher than the 1,144 resale homes and
412 sub- sales contracted in the first quarter.
Looking to the fourth quarter, the residential sales momentum is likely to moderate because of
the latest government measures to stabilise the market and fewer large- scale new launches.
Further price increases will be checked because they had climbed substantially in the last six
months and some resistance can be expected. Nevertheless, new home sales for the full- year
should exceed 14,000 units with a possibility of surpassing the market peak of 14,811 units in
2007. New projects in the line- up include Elliot At The East Coast, Parvis, Siglap V and
a condominium in Yishun Avenue 1.
Search Property News
