Private property market sentiment still weak: DTZ

Private property market sentiment still weak: DTZ

Property consultant DTZ Debenham Tie Leung says sentiments in the private market are expected to continue to be weak.

 

It added that sales activity may be improved by smaller developers who are more willing to lower price to move sales.

 

In a research note released today, DTZ predicts that though speculative activity has cooled, the sub-sale market is likely to see continued activity.

 

This as speculators dispose of their units as they reach T-O-P, especially for those who had purchased multiple units on Deferred Payment Schemes.

 

DTZ’s analysis of transactions of private residential properties in the first quarter noted that slight over 3,000 units were sold.

 

This was a significant 40 percent drop compared to the previous quarter on concerns of the U.S. sub-prime crisis as developers held back sales.

 

There were only 2,500 transactions for non-landed private properties, the lowest number since the first quarter of 2005.

 

The fall in non-landed private property sale was attributed to less developer sales, which numbered 487, the lowest since the SARS-stricken first quarter in 2003.

 

Those upgrading from HDB to private units numbered at 850, a decline of 26 percent over the previous quarter.

 

Median sub-sale prices also decreased 8 percent quarter-on-quarter, at just over 1,100 dollars per square foot.

 

With collective sale purchases dying down, the share of total transactions by companies went down to 4 percent.

 

Source: 938Live

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