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SINGAPORE : Demand for resale landed homes in the $1 million to $1.2 million range is on the rise, according to property consultants, citing the new policy changes announced recently.
But they say demand for resale condominiums is not expected to see a huge jump and that is because of the slew of new condominium launches.
The demand for resale private properties, especially landed properties, is on the rise.
Property consultants say one of the key reasons for the rise in demand is the recent policy change by the government.
There is also a lack of new landed properties being released by developers.
Said Mohamed Ismail, CEO of PropNex Realty: "Prices that are ranging below one million dollar mark had seen greater interest in terms of enquiries. And that has given some positive results, as in closing in on some residential resale. We have also seen greater interest for landed properties in particular. Especially for those in the region of one million dollar plus range because they are within the affordable range for many HDB upgraders."
But for resale condominiums, consultants say they do not expect to see significant rise in demand.
That is because of the slew of new condominium launches or the release of new phases by developers at some of their existing projects.
On the whole however, consultants are forecasting a rise in the number of resale transactions for the full year.
"We are expecting the secondary market to chalk up another 500 to 800 units annually, that means we could very possibly cross 6,000 units this year compared to last year's 5,488 units in the secondary market," said Dennis Yeo, Managing Director of Colliers International.
Despite the anticipated rise in demand, consultants say property owners should not raise their prices and expectations too drastically.
Said Yeo: "We think that owners may get a bit aggressive in saying that because of these policies changes, they want another 10%. And maybe consultants have also told them that they could potentially get another 10%. But realistically the 10% would only happen say in a year or 18 months' time."
"I think it will be too aggressive for property owners to expect a 10% jump in prices immediately. I would rather the property owners, if they do have intent to sell, to be realistic because the last thing that anyone should do is to capsize this boat again as it happened in 2001."
Separately, Colliers International and PropNex have also entered into a joint marketing tie-up.
They will be working together on some of Collier's existing projects which include The Trumps, Duet, 11 Amber and Tessarina. |
