Singapore’s real estate market will likely see a robust second quarter, with the number of new home sales expected to hit 4,000 units, up 11.3 percent from the 3,595 new units sold last quarter.
According to property services company CB Richard Ellis (CBRE), preliminary numbers submitted for developer sales in the April-May period totalled 3,380 units, which means that the entire second quarter will see new home sales of approximately 4,000 units.
It noted that the top five projects which have contributed to the primary sales volume so far are Eight Courtyards, Hedges Park, Foresque Residences, Terrasse and Foresta @ Mount Faber. Except for Foresta, the projects were priced between S$790 psf and S$1,200 psf, catering mostly to first-time buyers and upgraders.
Based on caveat data to date from the Urban Redevelopment Authority (URA), new homes sold in Q1 had a median price of around S$1.0 million, down from S$1.2 million over the same period last year.
“The threshold for buyers seems to be S$1.0 million for new projects. One reason could be the awareness of rising costs and increased home prices, which may be prompting home buyers to look to smaller sized units,” said Joseph Tan, Executive Director for Residential at CBRE.
According to property services company CB Richard Ellis (CBRE), preliminary numbers submitted for developer sales in the April-May period totalled 3,380 units, which means that the entire second quarter will see new home sales of approximately 4,000 units.
It noted that the top five projects which have contributed to the primary sales volume so far are Eight Courtyards, Hedges Park, Foresque Residences, Terrasse and Foresta @ Mount Faber. Except for Foresta, the projects were priced between S$790 psf and S$1,200 psf, catering mostly to first-time buyers and upgraders.
Based on caveat data to date from the Urban Redevelopment Authority (URA), new homes sold in Q1 had a median price of around S$1.0 million, down from S$1.2 million over the same period last year.
“The threshold for buyers seems to be S$1.0 million for new projects. One reason could be the awareness of rising costs and increased home prices, which may be prompting home buyers to look to smaller sized units,” said Joseph Tan, Executive Director for Residential at CBRE.
The average size of units sold during the Q1-Q2 period this year was below 900 sq ft, compared with 1,200 sq ft in the Q1-Q2 2010 period.
“This translates to a median price of just around S$1.0 million for the units sold in 1H 2011 while those in 1H 2010 recorded a median price of about S$1.2 million,” said CBRE.
Another possible reason is the 60 percent loan-to-value (LTV) ratio for home buyers with existing loans. It is probable that the majority of them are able to service their debt comfortably for a residential property of up to S$1.0 million.
Meanwhile, in the executive condominium (EC) market, the 315-unit Belysa development at Elias Road was launched in April at a median price of S$670 psf.
“This translates to a 21.0 percent price gap between Belysa and NV Residences, the private condominium beside it. The price gap accounts for the eligibility conditions and minimum occupation period tied to ECs. More than 160 units of Belysa were sold by end-May,” it said.
Some of the new launches expected to hit the market include Thomson Grand, Leedon Residence, an EC project at Segar Road and two mass-market projects at Sengkang Square and Serangoon.
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