More Singaporeans are buying homes as shown by Edmund Tie & Co report. The locals accounted for 76% of Q3 2016 sales.
Despite the third quarter exhibiting low demand because of the Ghost Month, purchases by locals increased by 1.9% to 3,403 on quarter-on-quarter. However, there was a reduction in purchases by buyers bearing HDB addresses causing a reduction in units sold from 1,792 to 1,480 in quarter two and quarter three.
Purchases by foreign buyers were 23% while Singapore Permanent Residents (SPR) purchased 784 units in quarter three a reduction from 816 units purchased in quarter two. Non-permanent residents (NPR) purchased 240 units a reduction from the 302 units in Q2.
“The possibility of Jurong Lakeside District becoming another CBD drew non-permanent resident buyers, with Q3 having the highest number of purchases of 14 units,” said the report.
Quarter three recorded increased homes sales of 1% to 4,596, quarter-on-quarter. This was attributed to a stronger resale market that registered an increase in sales of 15.7% q-o-q. There were reduced primary home sales by 13.2% due to a slow month of august.
As the transaction volume increased, the prices of homes remained soft. The URA private residential PPI reduced by 1.5% q-o-q in Q3, a decline in 12th successive quarter.
Edmund Tie & Co expects the prices of homes to drop further as the economy faces headwinds. It experienced a slower growth of 0.6% y-o-y in Q3.
However, properties close to transportation facilities and amenities are expected to have resilient prices.
The reported added that 2017 projects such as the Clement Canopy by UOL, another new launch in Siglap (Seaside Residences) and Grandeur Park Residences at New Upper Changi Road, are attractive and will draw more interest. They are expected to perform well given the choice of their location.
*Development names in brackets are not confirmed yet.