Private home sales drop to lowest level in two years

January 16th, 2012 at 9:57 pm

Private home sales in December dropped to its lowest level in two years, after the government imposed new cooling measures to curb Singapore’s red-hot property market.

According to data released by the Urban Redevelopment Authority (URA), the total number of units sold in December fell 64 percent month-on-month to 670, from 1,854 in November. Excluding executive condominiums (ECs), the sales volume hit 1,701, down 63 percent from the previous month.

“The slowed sales activity is mainly attributed to the Additional Buyer’s Stamp Duty (ABSD) implemented on December 8, the December festive holidays as well as the uncertain economic outlook for 2012,” said Carolyn Goh, Corporate Communications Manager of PropNex Realty.

“Homeowners or investors are now holding out with their property portfolio and watching the market trends while making plans to rent out their property as an alternative,” said Goh.

The Outside Central Region (OCR) was the most buoyant, contributing 527 units or around 64.7 percent of the total sales volume. The top selling projects include Archipelago (pictured) at Bedok Reservoir Road, which sold 103 units at an average price of S$1,118 psf; The Nautical at Sembawang which sold 84 units at an average of S$882 psf; and The Palette at Pasir Ris with 61 units sold at an average of S$901 psf.

Meanwhile, the most expensive homes sold were SOHO-concept units at The Scotts Tower, with 16 units snapped up at an average price of S$3,364 psf.

Overall, home sales activity last year was strong, evident in the top selling 32 projects mainly in the OCR, while nine projects came from the Rest of Central Region (RCR) and the rest were ECs.

“This is a 11.5 percent increase in transaction volume with a total of 16,306 units sold, compared with 2010,” noted Goh.

She stressed that 2011 had seen “more HDB upgraders fulfilling their aspiration of owning private homes as the bulk of activity is in the OCR mass market condominiums.”