Survey: Private home sales fall 24.5% in Q3

November 25th, 2011 at 10:34 pm

Demand for private homes in Singapore dropped in the third quarter of this year, as stock market volatility and global economic uncertainties affected purchase sentiment, according to DTZ Research.

Private home transactions declined 24.5 percent quarter-on-quarter to 6,879 units in Q3 2011, as both primary and secondary sales volumes dropped.

Based on DTZ’s analysis of caveats lodged with URA REALIS on 15 November 2011, Singaporeans continued to drive demand for private homes costing below S$1 million.

Of all purchases below S$1 million in Q3 2011, 68.7 percent were made by Singaporeans.

For private homes costing S$3 million and above, Singaporeans accounted for 48.8 percent of overall Q3 2011 transactions, while foreigners accounted for 27 percent of purchases.

Meanwhile, the proportion of mainland Chinese buyers of private homes hit a new high, from 26.1 percent in Q2 2011 to 30.6 percent in Q3 2011.

“On the base-case scenario of slow economic growth with the eurozone debt crisis contained, we expect a slower volume of sales in 2012. Nevertheless, private home sales will continue to be supported by demand particularly from upgraders as long as the pricing is reasonable,” said Chua Chor Hoon, Head of Asia Pacific Research, DTZ.

“However, if the scenario of a disorderly eurozone default or a China hard landing materialises, this will significantly dampen purchase demand and price growth in 2012.”