:: (March 2010) Residential Sales Outlook ::
Although the Singapore economy suffered a year-on-year contraction of 2.1 per cent, the local private residential property market charted a different course in 2009 which caught many observers by surprise. According to the Urban Redevelopment Authority’s (URA) record of lodged caveats, there were a total of 31,2491 transactions for the whole of 2009, representing a 125.0 per cent increase compared with the previous year. Among these, about 6,929 transactions or 22.2 per cent were made by foreigners. Buyers from Malaysia, Indonesia, China, India and the United Kingdom made up about two thirds of these transactions.
Total Number of Transactions and Foreigner Purchases,
Despite an uncertain economic outlook and a slew of government measures to curb overheating and speculation, the primary market saw a near record high of 14,688 new home sales in 2009. This is only 123 units less than the 14,811 sold during the peak of the last property upturn in 2007. By region, the highest number of sold units came from the mass market in Outside Central Region (OCR) with about 6,060 units or 41.3 per cent of the total number of units sold, followed by the mid-tier market in Rest of Central Region (RCR) (33.2 per cent) and the high-end market in Core Central Region (CCR) (25.5 per cent).
The resurgence in new home sales was largely attributed to greater affordability fuelled by declining interest rates, attractive financing schemes and smaller-size apartments. At the same time, the global economic crisis of 2008 had sent private residential property prices tumbling, making them more affordable to a wider market. Consequently, this drew an influx of public housing upgraders to the mass market in the 1H/2009, triggering an extraordinary uplift in demand for the mid-tier and high-end properties as seen in the last couple of months. Even though prices have bottomed out with some having returned to pre-crisis levels, demand remained firm in Q4/2009, especially in CCR.
Launches of several high-end projects, such as Lincoln Suites at Khiang Guan Avenue, Marina Bay Suites at Central Boulevard, Parvis at Holland Hill, Trilight at Newton Road and Urban Suites at Hullet Road, were well received. As a result, in terms of new sales, CCR outsold RCR and OCR for three consecutive months from October to December.
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