Singapore sales soaring

The real estate market in Singapore is escalating with sales increasing tenfold in February compared with the previous two months, according to official figures...

A total of 1,323 new homes were sold, contrasting starkly with the 108 units and 131 units sold in December and January respectively, the figures from the Urban Redevelopment Authority show.

Many of the sales were concentrated in three major projects with the Caspian, Alexis and The Quartz selling 517, 293 and 168 units respectively.

'Their main selling points were attractive pricing and proximity to MRT stations. Caspian also benefited from the Government's imminent plans to develop business and recreational facilities in Jurong East while The Quartz is almost ready for occupation as it is expected to receive its temporary occupation permit in April,' said Li Hiaw Ho, Executive Director, CB Richard Ellis.

The property consultant and advisory company expects demand for new homes to continue and is predicting sales of around 1,800 to 2,000 units in the first quarter of 2009.

Analysts are also expecting more sub sales of condominiums and private apartments in Singapore. According to DTZ the completion of projects will put pressure on real estate investors with weak holding power to offload their properties.

With official estimates projecting that another 10,488 units are slated for completion in 2009, the number of sub-sales is set to increase as investors or speculators who had bought their properties under the Deferred Payment Scheme exit the market.

Under the DPS, investors need to pay the first 10 to 20 per cent of their property purchase and then defer paying the rest until the project has achieved TOP status.

So investors or speculators who have yet to secure financing or those with weak holding power are expected to offload their properties most likely at a loss.

Source: www.propertywire.com