| SINGAPORE: Interest in the stockmarket may have taken a hit in recent weeks due to its volatility, but Singaporeans are still property hunting.
Close to half of the units at the weekend launches found buyers, and consultants have said that upcoming new launches should sustain buying momentum through to the end of the year.
It would appear that investors have sidelined the residential property market as the stockmarket recorded new highs during the past four months.
The sale of new private home units in the first quarter of this year was the weakest in past four quarters.
But market observers have said that there is more than meets the eye.
Some consultants point to the lack of new launches in the last few quarters that caused the fall in presales - from close to 2,800 units in the second quarter of last year to 1,900 units in the first quarter this year.
But buyers have shifted their attention to the resale market with transactions in the first quarter at levels not seen since 1999.
But the focus could be changing.
"Over the weekend, the private residential launches did well. I think its because there's not been many attractive launches in the last few months, so there's pent up demand," said Nicholas Mak, director of research at Knight Frank.
About 40 percent of the 91-unit freehold Newton One was sold over the weekend at an average of $1,250 per square foot.
As for the 48-unit Modules, those who flocked to the show-flat bought about half the apartments on offer.
Analysts expect the momentum should continue.
"Our residential presale take up is supply-led but also what is available. What are the new projects being launched and in this quarter, we want going to see a few new projects, big ones and as well as some 99-year projects like for example, the one at Buangkok which will be prelaunched this quarter. And going into the third and fourth quarter, we are going to see a few mass market projects that are absent in the first quarter," said Mak.
Consultants have said these launches could spur activity in the mass market which has so far lagged the high end segment. - CNA /dt
|
