Condo sales record modest gain for February.
CONDOMINIUM sales improved in February, with buyers targeting units at previously launched projects.
There were 382 apartments sold last month, a modest 2 per cent gain over the 374 units moved in January, the Urban Redevelopment Authority reported yesterday.
The improvement came despite only one new project going on the market: Just 357 units were launched last month, down from 421 in January.
"Market activity remained muted as home buyers largely kept to the sidelines amid nagging concerns which include the potential supply overhang, climbing interest rates and a soft rental market, all of which point to heightened expectations of possible downward price adjustments," said Ms Chia Siew Chuin, director of research and advisory at Colliers.
Despite the slight uptick in February, only 756 new units were sold in the first two months of the year - potentially leading to the slowest quarter of sales since the fourth quarter of 2008 when the financial crisis was in full swing. Only 419 units were sold in that three-month period.
Homes in the city-fringe areas chalked up sales of 183 units last month on the back of GuocoLand's new project, Sims Urban Oasis. The 1,024-unit project in Aljunied was February's bestseller, with 112 apartments snapped up at a median price of $1,397 per sq ft (psf).
Ms Christine Li, research head at Cushman & Wakefield, noted that Guoco had likely launched the project despite sluggish demand so that buyers could visit its show suite during the four-day Chinese New Year holiday weekend. The project has since sold 196 units.
Suburban projects recorded sales of 173 units while condominiums in the city centre moved 26 units.
The tepid sales, a result of a "web of policies curbing market demand", have led developers to accumulate unsold units, said Dr Chua Yang Liang, head of research and consultancy at JLL.
He estimates that developers are holding on to 21,000 units that have yet to find buyers.
"Developers are likely to feel the pressure," said Dr Chua, and will probably adopt "innovative measures" to sell units in the next few months. This could draw buyers back and bring new home sales for the full year to between 4,800 and 5,800 units. Last year, 7,378 units were sold - the lowest since 2008, when 4,264 units were sold.
Upcoming projects include Frasers Centrepoint's 920-unit North Park Residences and UOL Group's 797-unit Botanique at Bartley. Both are expected to be launched within the fortnight.
The Straits Tims / Top of The News Published on Tuesday, 17 March 2015
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