Research: New home sales drop 15%

December 14th, 2011 at 1:53 am

Singapore’s property market has become increasingly cautious, as sales of new homes dropped 15 percent month-on-month in October, according to Savills Research.

Due to strong home sales from January to October 2011, about 13,688 new home sales were registered over that period, representing a four percent year-on-year rise.

Three major projects that can yield over 1,500 new mass-market homes are set for launch this month. These include Qingjian Realty’s Riversound Residence at Sengkang East Drive, Far East Organization’s The Hillier at Hillview Avenue and MCC Land’s The Nautical at Jalan Sendudok.

Excluding executive condominiums (ECs), new home sales could range between 15,000 and 15,500 units this year, down from last year’s record of 16,292 units.

Prices of high-end and super-luxury homes tracked by Savills are expected to remain stable from the fourth quarter of 2011 until next year, while prices of new mass-market and mid-tier homes may continue to edge up by a further eight to 10 percent in 2012.

Meanwhile, transaction values and leasing volumes for all property types reached record levels of S$186 million and 38,320 transactions respectively in the first 10 months of this year.

Median rents for non-landed properties grew nine percent year-on-year.

The estimated average monthly rent of high-end non-landed residential properties tracked by Savills dropped two percent quarter-on-quarter to S$5.27 psf per month.

In addition, leasing volume may achieve a record high of between 44,000 and 45,500 transactions this year, while rents may correct further by one to two percent in 2012. Related Stories:Henry Park site sold for S$175.9m Developers offer discounts to help buyersProperty prices expected to decline by 30%