Private property sales jumped 52.6% last month

Private property sales jumped 52.6% last month

 

Judging by home sales for May, the worst may be over for the private residential market.

 

But analysts aren’t counting the chickens just yet.

 

The private residential market may have seen the worst for the year.

 

The number of private residential units sold in the month of May was up by 52 per cent over April to 441 units including executive condominiums.

 

According to the Urban Redevelopment Authority, there were an additional 152 units sold for May as compared to the month before.

 

Joseph Tan of CB Richard Ellis said this was partly a function of supply as developers launched more new units for sale compared to April, to provide potential buyers with more choices

 

Savills Singapore’s Director of Marketing and Business Development Ku Swee Yong.

 

“I think there are certain circles that are thinking that the bad news has been mainly priced in. I think we’ve defintely seen the worst for number of transactions in April. So 441 transactions in May looks pretty healthy. Over the next 2 months, it depends on whether developers are willing to launch. There may be a few launches coming up just before the hungry ghost festival.”

 

The average median price per square foot for a unit sold last month also rose slightly, to around 1,222 dollars, from April.

 

And the priciest unit sold for the month of May was from Scotts Square at 4,612 dollars per square foot.

 

Mr Tan of CB Richard Ellis said contrary to market expectations, prices of luxury homes seemed to hold firm.

 

Some projects such as Boulevard Vue and Scotts Square continue to see sales at around 3,000 dollars per square foot.

 

He said the sales momentum in May has continued in June so that the number of new homes sold is likely to be better.

 

This is also because more projects are expected to be launched such as Dakota Residences and The Amery.

 

In all, the property consultancy expects the total sales volume of new homes in the second quarter to be about 80 percent more than the 762 units in the first quarter.

 

But Nicholas Mak, of Knight Frank, says that the road ahead is still uncertain.

 

“I think we’re still going to continue to see some turbulance in terms of prices as well as in home sale volume. It’ll probably fluctuate within a certain narrow range, for example, we expect home sales by developers to fluctuate between 300 to 600 units sold every month for the remainder of 2008.”

 

Source: 938Live

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