Despite the dropping prices of private homes, the property market in Singapore is showing signs of life. As reported by The New Paper, the luxury residential sales and the collective sales market have improved.
The Urban Redevelopment Authority data indicated that the prices of private homes reduced by 10.8% in 12 consecutive quarters while the rents reduced by 10.7%.
However, there was an increase in sales volume by 9.8% y-o-y to 11,993 units, for the first 9 months of 2016. The figure does not include executive condominiums.
The reducing price has helped to boost sales in the luxury residential sector.
Alan Cheong, Head of Research Savills Singapore revealed that as at December 15, the Core Central Region that comprises of Novena, Bukit Timah and Orchard recorded 2,601 transactions of private homes, a rise of 42.6% from what was recorded in 2015.
“This is an indication that strong interest in the private residential market in luxury segment has been revived,” said Cheong.
According to Cheong, interest has been revived due to creative marketing plans by the developers such as OUE Twin Peaks deferred payment plan.
Another benefit in the year is the comeback of collective sales. This year had 3 deals of more than $1 billion sealed in comparison to 2015 where only one deal of $380 million was sealed and 2014 which did not have any deal sealed.
The purchase of Shunfu Ville at $638 million to Qingjian Realty, a Chinese developer was the largest en bloc sale in 2016.
Analysts are optimistic that there will be more sales in 2017.
One of them is Dr. Lee Nai Jia, Research Head Edmund Tie & Co who is confident that there will be more sales sealed next year.
“This is due to the reduced asking prices by sellers and the developers’ keenness on smaller sites that are well-located,” he said.
Read on more new launches in year 2017 which include Grandeur Park Residences near Tanah Merah, Seaside Residences at Siglap District 15, Artra @ Alexandra at District 3 Singapore and not forgetting Park Place Residences, a mixed development in District 14.
