Sales of new homes remain robust

Straits Times: Tue, Feb 28
   HOME sales over the past week stayed strong, with few signs of the expected declines brought about by December’s property measures.   Parc Rosewood at Woodlands has moved 55 more units since Monday last week, bringing total sales at the 689-unit p…

HOME sales over the past week stayed strong, with few signs of the expected declines brought about by December’s property measures.

Parc Rosewood at Woodlands has moved 55 more units since Monday last week, bringing total sales at the 689-unit project to 565. Prices have averaged $1,000 psf.

Macly Group’s Guillemard Edge in Geylang has nearly sold out. Last week, the developer reported sales of more than 230 units. Since then, about 40 units have sold with prices ranging between $1,180psf and $1,250 psf. New launching project at newton will have same robust result upon launching, 26 Newton.

The Straits Times also understands that the UOL Group’s Archipelago estate in Bedok Reservoir sold 15 units over the weekend, with prices hovering around $1,000 psf.

Noting that buyers are now more selective, property analysts caution developers that not all new project launches will necessarily enjoy similar levels of success.

Mr Mohamed Ismail, chief executive of PropNex Realty, said a property’s location and pricing may not be the only deciding factors for buyers.

‘The theme of a development now matters as well. We’ve seen some properties that are integrated with a shopping mall, or that have SoHo and loft concepts sell well, so it indicates that people are also looking for a unique piece of property that stands out from the rest,’ he said.

Mr Lee Sze Teck, senior manager at DWG Research and Consultancy, said the abundance of cash in the economy is helping support the sale of new homes.

‘There’s still a fair bit of liquidity in the market, and people are still looking to put their money in property… This could see February’s new home sales cross the 1,000 mark,’ said Mr Lee.

He pointed out that people want value for their money, which could explain why some buyers are drawn to the discounts developers are dishing out.

Far East Organization, which has been offering discounts at selected projects, sold 66 units across its various projects last week.

But Mr Ismail pointed out that the recent robust sales of new homes comes after the Chinese New Year period, with developers and agents aggressively marketing a slew of new projects.

‘While demand for new homes seems healthy, the market has not seen a similar reaction for resale properties and high-end homes in the core central region,’ he said, noting that the response for luxury homes is lukewarm and the number of successful mass market resale deals is lower than before the December measures came into effect.

cherlim@sph.com.sg

Source: The Straits Times © Singapore Press Holdings Ltd

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