Mid-end private property market ranks top in March

March 2010 was a good month for the private property residential market, as seen in URA's figures released last week, with 1,761 transactions recorded. This was only eclipsed by only two months in 2009, when private property saw a record number of sales.

A majority of transactions (71.6%) were at a median price of $1,000 psf or more, a trend which began in October 2009 amidst a recovering economy. URA's figures showed that properties with median price tags of $1,000 psf to $1,999 psf alone accounted for 51.8% of all the transactions in March.

"The statistics show that investors' confidence is certainly growing while demand from upgraders is still very strong," says PropNex CEO Mr Mohamed Ismail, "despite the fact that more units were launched than sold during the month."

Mid-end projects sold like hot cakes, with properties in the Outside Central Region attaining prices of over $1000 psf. The Vision at West Coast Crescent, in particular changed hands at a median price of $1,050 psf for its 236 units. "This is a breakthrough in the private property mass market. However, this may not be sustainable in the long-term," added Mr Ismail.

Besides the top-selling The Vision, other hot projects in March 2010 were The Estuary (212 units at a median price of $770 psf), 76 Shenton (202 units at a median price of $1,900psf) and The Laurels (115 units at a median price of $2,830 psf).
Altogether, these accounted for 43.4% of all the properties transacted, and most of these were above the $1,000 psf mark.

Analysts such as Colin Tan, head of research and consultancy at Chesterton Suntec International commented that most buyers are largely investors, who tend to go for smaller one and two-bedroom units as they are easier to offload. Foreign investors, who tend to invest in prime district units, are also streaming in as the economy picks up growth.

Despite the possibility of local interest rates possibly rising in tandem later this year should US hike its rates, analysts remain upbeat that private residential properties will maintain their buoyancy. Colin Tan from Chesterton Suntec International succinctly concluded, "If the rise is small, the buying will continue. If it is significant and rapid, property prices may start to correct."