Sunday, August 17, 2008

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Private Property Price Slipped in July 2008 but July Sales 12% more than June

Prices of properties sold in July slipped. Close to nine out of every 10 homes sold last month were suburban units that cost $1,000 per sq ft (psf) or less. No homes were sold above $4,000 psf for the second consecutive month. This trend is likely to continue, property consultants said, as persistent caution in the high-end market is causing developers to delay expensive launches. Even then, developers continued to launch more units across the board than they were able to sell last month, adding to the inventory of unsold homes, observed Mr Nicholas Mak, director of research and consultancy at Knight Frank.

Developers, however, sold 897 new private homes in July, 12% more than in June (But a far cry from the 77% jump between May and June). Property consultants also predicted that rising sales will be reversed this month, partly due to July being the Chinese unlucky 'Hungry Ghost' month, and partly, the increasing dismal in the global economy.

July's sales were boosted by sales from four large-scale suburban projects that together accounted for almost two-thirds of the whole month's deals. Livia in Pasir Ris saw 301 apartments taken up, at a median price of $671 psf. Of these, four crossed the $750 psf mark, but the rest were well within the $500 to $750 psf range. Clover by the Park in Bishan sold 100 units at a median price of $753 psf, down slightly from the median $765 psf it had fetched in June. And Kovan Residences in Kovan Road sold 87 units at a median price of $882 psf - just below its $887 psf in June - while Beacon Heights in St Michael's Road sold 61 units at a median price of $865 psf. In the mid-tier segment, Parc Sophia in Dhoby Ghaut was the best performer, selling 25 units at a median price of $1,503 psf. CapitaLand's Wharf Residences near Robertson Quay sold 23 units at a median price of $1,506.

Generally, prices have come under pressure from the gloom in the market and are starting to dip, consultants said. The lowest transacted price in the suburban region fell 23 per cent last month from June, while the lowest price in the central region fell 7 per cent, noted Dr Chua Yang Liang, Jones Lang LaSalle's head of South-east Asia research. He said buyers of suburban projects are probably comfortable with paying $650 to $850 psf right now, while those looking for well-located city-fringe homes have budgets of $850 to $1,000 psf. Sales were dismal in the high-end segment, with only eight units - less than 1 per cent of total sales - transacted above $3,000 psf. At the height of the property fever in July last year, 217 units fetched more than $3,000 psf, accounting for more than 15% of the total units sold then.

May also want to read:
History of Singapore Property 1960 to 2008
Buy or Not Buy: How to decide amid mixed market signals
When to Buy, When Not to by
Property Price Index Graph Plotter & Online Property Valuation
Your Property Investment Determines Your Financial Success in Your Life
HDB Resales: West Sees Highest Price Increase


Chris1187 said...
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