More buyers opting for private resale homes

July 19th, 2012 at 8:00 pm

Private resale homes attract more buyers as they offer better value compared to new launches, according to analysis by Dennis Wee Group (DWG).

The report noted that the gap in prices between new and resale homes has tightened. Caveats for secondary homes rose 33 percent in Q2 2012 from the previous quarter.

The central region saw the largest increase in resale transactions at 37.4 percent. The northern region followed with 32.7 percent while the west posted a 30.9 percent rise.

The gap in median resale prices rose to 4.6 percent from S$981 psf in Q1 to S$1,026 psf in Q2 while median prices for new projects were stable at S$1,160 psf.

DWG also noted that the median size of units sold in the primary market rose from 807 sq ft in Q1 to 947 sq ft in Q2 due to lower sales of small units.

In addition, transactions done by foreigners have increased as they have come to accept the ABSD (additional buyer’s stamp duty).

A total of 445 private homes were sold to foreigners in Q2, a rise of 26.8 percent from the previous quarter.

Meanwhile, DWG said more projects are expected to be launched before the lunar seventh month which runs from 17 August to 15 September.

 

Source: Property Guru