Few Pre-Chinese New Year Buyers
Jan 17, 2012
Sheena Chua
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Hopes and expectations among property developers were that the pre-Chinese New Year period would usher in better sales. However, with the cooling measures playing out to large effect, property agents are welcoming healthy numbers of visitors to their show flats but are closing few sales.
(Cooling measures are now starting to have a real effect on the Singapore property market. Image courtesy of Thinkstock.)
Experts tell The Straits Times that the possibility of plummeting home prices following the latest round of cooling measures that were announced last month resulted in many homebuyers holding out on their purchases.
One such show flat was that of Riversound Residence in Sengkang East Avenue. Its developer Qingjian Realty sold about 10 apartments at an average price of $850 per sq ft (psf). This brings its total sales to over 60 units since its launch the week before.
Qingjian managing director Zuo Haibin told The Straits Times that with many expressing their interest in the project and few have indicated a solid commitment, the pressure of the cooling measures is “keenly felt”.
“Our aim now is to sell about 60 to 70 per cent of the 200 units that make up the project's first phase within three months. Had the measures not been implemented, we would probably have sold that many within a month,” he said.
Yet The Straits Times reported that the firm still has plans for another mass-market project launch in Punggol in June.
Over the past weekend a similar situation can be found at Sembawang Road, where Hao Yuan Investment’s The Nautical lies. The 435-unit development sold off some 15 more homes at an average price of $850 psf this weekend. In total, it managed to find owners for about 150 of its units.
Far East Organization, meanwhile, sold an additional 36 units at The Hillier in Upper Bukit Timah. A total of 332 of its 528 units have been taken up at an average price of $1,205 psf.
Homebuyers The Straits Times spoke to said they just want a clearer picture of the market and prices before making a decision. Others told the paper that they were waiting for more launches to come after the Chinese New Year period.
This behaviour greatly contrasted what property agents used to see in show flats. In the past, potential buyers would bring along cheque books to make purchases on the spot. Now, potential buyers are more cautious and make multiple visits before buying.
One visitor to the Riversound show flat, only known as Mr. Heri, told The Straits Times that he and his wife were considering purchasing a four-bedroom apartment there as an investment. “But we want to look at another project in Punggol before making the final decision,” said the 37-year old who works in supply chain.
“It's not small change we're talking about, so we need a bit more time.”
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Comments:
anonymous said...
It shows that the government changes their policy too much and too often.
January 25, 2012 11:19:00 AM
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