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Singapore's January private property transaction at all time low
Singapore´s private property transactions for the month of January registered the lowest take-up rate ever, recent data from the Urban Redevelopment Authority (URA) shows.
According to the URA´s data, 204 new units were launched and 107 units were sold in January this year.
This was slightly lower than the 157 new homes launched and 131 units sold in December 2008.
Analysts say, January´s figure is of historical significance as the economic climate has weakened market sentiment.
“Based on this latest URA data, the number of units sold (take-up) in January 2009 is the weakest monthly performance since the series started in June 2007. Take-up has declined from December 2008 by 18 percent to 107 units, with CCR recording the lowest monthly sales with only 13 units sold,” Dr Chua Yang Liang, local director and head of research, Southeast Asia for Jones Lang LaSalle says. “The lacklustre global demand and weakening domestic confidence in the real economy continue to over shadow the local residential market. Furthermore, with two major holidays (New Year and Chinese New Year) in January, buyers were largely delaying their consumption.”
Despite the low transactions recorded in January, the February property market fared much better with developments like Caspian and Alexis, enjoying strong take-up rates.
Caspian, a 99-year leasehold project near Jurong Lake, witnessed a take-up of 65 percent of its 712 units within two weeks while Alexis, a freehold project in Alexandra Road, sold all its 293 units within one week.
Analysts say their success could be attributed to a few factors.
“Their success could be attributed to strong location attributes, competitive pricing and creative unit mix. The tie-up between banks and developers to offer the interest absorption scheme also helped to stimulate sales,” Li Hiaw Ho, executive director, CBRE research, says.
“Buyers today are not necessarily looking at unit prices but rather the total quantum sum, that is the total amount that they need to pay for the purchase. By keeping the total sum of the units at an affordable level, developers should be able to move their stock accordingly. For example, though not reflected in this month’s database, the stunning take up for Alexis @ Alexandra at average estimated S$1,000 per sq ft and Caspian at $580 per sq ft were two launches which have more smaller units, hence buyers commit less than $1 million for their housing purchases,” Dr Chua says
Analysts expect the first quarter of 2009 to continue experiencing some level of activities in the market.
“While the Singapore economy remains in recession, the continued moderation of prices should encourage potential buyers to come forward. It is likely that the first quarter of 2009 may clock in a take-up rate of 1,000 to 1,200 units,” Li says.
Source: Property Report
According to the URA´s data, 204 new units were launched and 107 units were sold in January this year.This was slightly lower than the 157 new homes launched and 131 units sold in December 2008.
Analysts say, January´s figure is of historical significance as the economic climate has weakened market sentiment.
“Based on this latest URA data, the number of units sold (take-up) in January 2009 is the weakest monthly performance since the series started in June 2007. Take-up has declined from December 2008 by 18 percent to 107 units, with CCR recording the lowest monthly sales with only 13 units sold,” Dr Chua Yang Liang, local director and head of research, Southeast Asia for Jones Lang LaSalle says. “The lacklustre global demand and weakening domestic confidence in the real economy continue to over shadow the local residential market. Furthermore, with two major holidays (New Year and Chinese New Year) in January, buyers were largely delaying their consumption.”
Despite the low transactions recorded in January, the February property market fared much better with developments like Caspian and Alexis, enjoying strong take-up rates.
Caspian, a 99-year leasehold project near Jurong Lake, witnessed a take-up of 65 percent of its 712 units within two weeks while Alexis, a freehold project in Alexandra Road, sold all its 293 units within one week.
Analysts say their success could be attributed to a few factors.
“Their success could be attributed to strong location attributes, competitive pricing and creative unit mix. The tie-up between banks and developers to offer the interest absorption scheme also helped to stimulate sales,” Li Hiaw Ho, executive director, CBRE research, says.
“Buyers today are not necessarily looking at unit prices but rather the total quantum sum, that is the total amount that they need to pay for the purchase. By keeping the total sum of the units at an affordable level, developers should be able to move their stock accordingly. For example, though not reflected in this month’s database, the stunning take up for Alexis @ Alexandra at average estimated S$1,000 per sq ft and Caspian at $580 per sq ft were two launches which have more smaller units, hence buyers commit less than $1 million for their housing purchases,” Dr Chua says
Analysts expect the first quarter of 2009 to continue experiencing some level of activities in the market.
“While the Singapore economy remains in recession, the continued moderation of prices should encourage potential buyers to come forward. It is likely that the first quarter of 2009 may clock in a take-up rate of 1,000 to 1,200 units,” Li says.
Source: Property Report
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