Record sales in Q1 2012 => Rolling good times are back..?

By The Folks @PropTalk - April 16, 2012 No Comments
The number of new private homes sold in the first quarter of this year crossed the 6,600 mark - a record high, according to analysts. But have prices of private home sales peaked?

Riversound Residences and Palm Isles were among last month's top four selling projects, all located in the suburbs.

March raked in over 2,300 new private homes, lower than February's 2,400.

Still, the first three months of 2012 have seen monthly sales of private units peaking above 1,500 units - considered high by many analysts.

While analysts do not see a bubble forming in the property market, they said further cooling measures may only have a temporary effect. And the mid tier and high end market will still see correction of an estimated 15% by the end of 2012, dragging overall prices by 5%.

Chia Siew Chuin, director of research, Colliers, said: "When we talk about a property bubble, one has to be aware that we not only look at sales per se, but also at prices. The number of sales in this period is really supply-driven, but it is also likely to be at the expense of very little price movement we have seen in the market."

Still, some analysts said developers are catering to demand, launching at least 2,000 units every month in 2012 - a figure only attained in April last year.

Chris Koh, director, Chris International, said: "The number of units being pushed out and the numbers being taken, you can see does not differ much. Like what we have shared, 2,500 units against a 2,300 take-up is actually a very healthy number."

Contrasting market sentiment between the mass and luxury markets are likely to affect prices.

Ong Teck Hui, executive director, Credo Real Estate, said: "Where we are just talking about OCR where the volumes have been pretty strong, then the outlook for this year is fairly positive. We are likely to see a stable market with some slight upside in prices, perhaps 3-5%. For CCR, in particular, the softening of prices is likely to continue."

With the record high number of new private home units being taken up, analysts said 2012 is set to outperform last year's sales of 16,000 units.
Source: Channel News Asia



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