|Shift in Demand to Executive Condominiums
Featuring key takeaways from Prime Minister’s National Day Rally speech and how these would impact the local industries, prominent business leaders shared their opinions in “Views from the Top” in The Business Times dated 31 August 2015 – including views from Steve Melhuish, CEO of PropertyGuru.
Steve Melhuish presented his fore-thoughts on the property industry after listening to Prime Minister Lee Hsien Loong’s National Day Rally speech, and intimated that not only will there be a shift in demand for ECs, it will be even more so in locations where competition is tighter.
“The Prime Minister announced a higher income ceiling for the purchase of BTO flats and new executive condominium units. ECs in general – from those near TOP (Temporary Occupation Permit) stage, but especially those that are going to be launched – will benefit from this revised policy as their pool of potential buyers expands. Conversely, mass-market private condominiums might be affected and see some demand shifting over to ECs, especially in locations where competition is tighter.” Said Steve.
Steve went on to share that search volume on PropertyGuru.com.sg could be a good indicator of whether such a view can be validated. This is so because an internal study has shown that there are close correlations between search volumes and transaction volumes, three to six months forward.
“With renewed interest in the real estate market, we foresee more buyers checking out new projects and comparing properties. Search volume is a leading indicator of transaction volume by three to six months; we therefore foresee that our search and enquiry volume will grow in the next one month or so, with buying activity picking up one to two quarters.”
Stay tuned as PropertyGuru monitors said search volumes to share with you more insights!
Article from “Views from the Top” published in The Business Times on 31 August 2015