Low loan rates boost private home sales

Singapore residential for private and public home sales this year have been boost up by strong liquidity and low interest rates, with the take-up of new homes in the fourth quarter estimated at 3,600 to 4,000 units for private sector alone.

“Projects located close to MRT stations remain popular among homebuyers. Besides location, other selling points include government plans for future development and new transport network, amenities, tenure and product attributes.” said executive director for residential at CB Richard Ellis (CBRE), Joseph Tan.

Good response in the fourth quarter, attracting a number of new projects were the house Glyndebourne and Spottiswoode 18 Residences, 89 percent and 92 percent sold, respectively.

The executive condominium (EC) market return in the fourth quarter, five years after the break 1,659 projects with the EU three units of the sandwich class.

With the strong take-off in the fourth quarter, new homes, the total sales expected to reach 15,500 to 16,000 in 2010 as a whole, as early as the high record 14,811 units sold in 2007 .

Based on the lodged, the total transaction volume of homes sold until November of this year is S$16,980,000,000 dollars, 29.6 percent lower than the S$24.11 billion dollars in 2007.

The total transaction value is lower this year can be attributed to a larger number of small units sold compared to 2007, according to CBRE.

Meanwhile, URA private housing price index, which rose by 14.4 percent in first three quarters, may register a marginal upside in Q4, increased overall 15 percent to 16 percent for this year.

“Overall, prices for mass-market home key, mid-tier and have more or less caught up with peak levels in late-2007. However, a new luxury property prices are still backlog of about 15.0 percent,” said Mr Tan.

Looking ahead, Mr Tan estimates that Singapore’s economy grew 4 percent to 6 percent, although more slowly than this year. Demand for new homes can reach 11,000 to 15,000, while the price is likely to grow 3 percent to 5 percent, he said.

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