The sales of incomplete private houses remained on top in March, which prompted several analysts to expand their estimate for the transaction volumes in 2009.
Based on the released monthly data of the Urban Redevelopment Authority, around 1,220 units were sold last month as shoppers continued to grab mostly mid-range houses. Although this figure slightly declined by eight percent from February, home sales were still viewed to increase despite the economic recession.
“At this rate of growing optimism, 2009 could register a total new home transaction volume of more than our original projection of 5,000 to 6,000 units," said Li Hiaw Ho, executive director of CBRE Research. "Depending on launches throughout the year, the total new home volume might even reach 8,000 units, similar to the volume witnessed in 2005."
Mister Li calculated a total of 2,660 units sold during the first quarter this year, representing the 62 percent of the total new houses sold last year and more than six times of the total units sold from October through December.
Mass-market and mid-tier developments remained the principal drivers for the said sales. The Arte in Balestier, Mi Casa in Choa Chu Kang and Double Bay Residences in Simei composed more than one-third or approximately 455 units of the total sales. The average price per unit for these projects ranges from $617 to $874 per sq ft while the average price of almost two-thirds of the total units being sold reached below $800 per sq ft.
The luxury sectors also noted some movements in home sales, with buyers accepting 62 units of the development project called Mercury along the area of the River Valley.
The assistant vice-president of ERA Realty, Mr. Eugene Lim, believed that the increase of home sales may continue if the economic condition improves.
"It depends on how the economy is progressing, because … this is all tied into sentiment. Right now, even though sentiment is pretty gloomy, we still see a lot of interest on the ground, especially from people who are looking for good buys in the property market," said Mr. Lim.
Just last month, developers launched a total of 832 units, a 22 percent decrease as compared to that in February.
According to Colin Tan, if developer’s current pricing list continued to be reasonable, chances of stable sales may continue to increase in the upcoming months.