[SINGAPORE]
After going into deep freeze since the additional buyer's stamp duty
(ABSD) was introduced on Dec 8, resale transactions of completed private
homes snapped back to life in March. The recovery was partly disguised
amid the first quarter figures, weighed down by dismal volumes in
January and February.
In fact, Savills Singapore's analysis shows
that resale volumes for March have recovered to levels seen before the
ABSD kicked in. The turnaround was sudden, as the resale market had
remained jittery even while buyers were returning to property launches
in the first two months of the year.
However, since March, agents
say that some of the eye-popping per square foot (psf) prices achieved
at new launches have helped to jumpstart interest in the secondary
market for completed properties, where prices look more attractive.
Savills'
analysis of URA Realis caveats data shows 1,142 resale deals for
private homes (excluding ECs and en bloc sales) done in March - double
the 565 caveats for February and more than three times January's volume
of 314 transactions. The March number also exceeds December's volume of
776 and November's 981.
"Given that the average monthly resale
volume for 2011 was 1,166 transactions, the March numbers show that
resale volumes have recovered back to pre-ABSD levels," said Savills
Singapore research head Alan Cheong.
The March 2012 resale volume is still 23 per cent below the 1,480 caveats lodged in March 2011.
The
final tally for March 2012 could rise as more caveats stream in over
the next few weeks. Savills' analysis, based on caveats captured by URA
Realis as at April 24, also showed 332 resale transactions being done so
far this month.
Savills commented: "The pace of resales in April
is still healthy. Agents are still conducting frequent viewings and
enquiries. Barring any new property cooling measures or external shocks,
resales should remain robust for the next few months - given the
current low interest rate environment, liquidity and increasing
population scenario, among other factors."
The weak performance
in the first two months dragged down the volume of resale deals of
private homes for Q1 this year to 2,021, a decline of nearly 25 per cent
from 2,688 in the preceding quarter and a year-on-year drop of 42.3 per
cent from 3,503 units in Q1 2011.
"When the ABSD was imposed on
Dec 8, 2011, new home sales practically froze in the following weeks.
Subsequent to the successful launch of Watertown and Parc Rosewood in
January, resale buyers took a while to fully absorb the fact that the
property market still has legs. Only in March did they put pen to
paper," said Mr Cheong.
Agents report that high prices achieved
for 99-year leasehold suburban launches like Watertown in Punggol (with
median prices of about $1,340 psf in February and March) and Sky Habitat
in Bishan, which marked a new record for the suburban condo market
based on an average price said to be about $1,650 psf after taking into
account the initial 3 per cent discount given to all buyers - have
helped to stir interest in the resale market and in projects launched
earlier that are still being marketed by developers.
Archipelago, a five-storey, 99-year condo facing Bedok Reservoir Park, is going at about $1,000 psf on average.
Compared
to Sky Habitat, resale prices for some completed freehold properties in
the prime districts would appear attractive to some buyers, say agents.
For example, a 990 sq ft ground floor unit at One Jervois changed hands
for $1,515 psf (reflecting an absolute price of $1.5 million) in March,
while a 947 sq ft unit on the third floor of Jervois Regency sold for
$1,361 psf (about $1.29 million) in April.
A 12th floor unit of
2,250 sq ft at Residences@ Evelyn changed hands at $1,609 psf in March,
while a 2,508-sq ft fourth floor unit at Chelsea Gardens at Walshe Road
sold for $3.8 million, which works out to $1,515 psf.
David
Neubronner, director of residential project sales, Jones Lang LaSalle,
said: "Completed freehold properties at Meyer Road and in Districts 10
and 11 priced at $1,500-1,600 psf represent good values for owner
occupiers."
Although psf prices are higher for new launches,
absolute price quantums are generally bigger for older completed
projects as units are mostly larger.
"Buyers of resale properties
may be a different group than those buying in the primary market; they
could be better heeled," suggests an agent.
Credo Real Estate
executive director (residential) Manjit Gill says the company has seen
an increase in enquiries and requests for viewings of completed
properties in the resale market, particularly those in the vicinity of
new launches.
"While psf prices are lower in the resale market,
buyers would have to make full payment of the purchase price upon
completion of sale (usually in three months) whereas if they buy a unit
from a developer in a newly launched project, progress payments can
stretch over the three years or more that it takes to complete the
project," he adds. Lower psf prices in the resale market may also be due
to the age of the project and its facilities.
Source: Business Times