New private home sales improve mildly

Romesh NavaratnarajahNovember 17, 2014

Sales of condominiums launched by developers reached 765 units in October, revealed fresh data from the Urban Redevelopment Authority (URA).

Including executive condominiums (ECs), the number of units sold last month was 855.

Month-on-month, this is a 17 percent increase from the 707 new units inclusive of ECs that found buyers in September.

But during the same month last year, developers managed to sell 1,009 units excluding ECs.

With the property cooling measures continuing to bite, particularly the Total Debt Servicing Ratio (TDSR) framework, analysts believe that buying sentiment in the primary market will remain muted as home buyers adopt a wait-and-see approach.

Key considerations for making a purchase will come down to project location as well as the launch price.

According to URA, prices as well as the number of units sold during the month are based on the Option to Purchase (OTP) issued by developers to buyers and reported to URA. Not all OTPs result in confirmed sales.

An OTP is a right or option given by the vendor to an intending purchaser to buy the property at a specified price within a specified period of time – the validity period of the option. The intending purchaser must pay a booking fee of between 5 – 10 percent of the agreed price for this right or option. The purchaser has to exercise the OTP within its validity period if he decides to buy the property.

 

Romesh Navaratnarajah, Singapore Editor at PropertyGuru, wrote this story. To contact him about this or other stories email romesh@propertyguru.com.sg

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