Private home sales drop 20% in October

As the number of transactions dipped to 1,638 from the record high of 2,064 in September.

In a not highly surprising turnaround from last month, the number of private home sales in October dipped to 1,638 transactions from the record high 2,064 transactions (including Executive Condominiums) in September 2011, according to PropNex’ report . This is at a decrease of 20% M-on-M, with 65% of the total units sold saw a median psf of less than $1,200.

“The decrease in transactions comparing month-on-month was mainly because of September’s exceptionally high volume of transactions contributed by the 638 units sold at Treasure Trove. October’s transactions are still considered relatively strong with the mass market as the driving force. Home buyers are now more price sensitive, for as long as the new launch prices are below $900psf, there will be a good demand from these HDB upgraders,” explained Mr Mohamed Ismail, CEO of PropNex Realty.

Like in the last 2 months, the top selling projects in October came from the sale of private apartments mainly in the OCR and RCR. Parc Vera, located at Hougang sold 144 units with median prices of $840psf, Regent Residences in Serangoon sold 128 units at a median price of $1,321psf, and Este Villa sold 121 units at $614psf while Executive condominium – Arc at Tampines sold 149 units at $729 psf. The three new developer top selling projects (excluding executive condominium) were certainly instrumental in the robust sales figure, accounting for 393 units, or about 28% of the total number of units (excluding EC) sold in October 2011.

Executive condominiums and the new development launches in the OCR had kept the private property market buoyant as buying is supported by HDB upgraders purchasing their first private home, typically for their own occupation. It was the affordable price of the four best-selling projects in October that facilitated such a relatively healthy volume of transactions too.

“With the current high HDB resale prices and housing loans at its lowest, many home buyers are opting for the attractively-priced mass market condominiums. In November, sales at Palette located at Pasir Ris Grove saw a brisk take up of 200 units at its preview launch. However, it is cautioned that the next few months’ sales will slow down in the private property market as cyclical trends show that the last few months of the year are usually the quieter period till January 2012 as homebuyers will be preoccupied with the celebrations.

Thus, some developers may hold back new launches due to the festive seasons, school holidays and Lunar New Year,” concluded Mr Mohamed Ismail, CEO of PropNex Realty.