Singapore properties remain hot despite cooling measures

Interest rate amid high liquidity and robust economic growth bolster property sales to 4, 313 units for 4Q10, offsetting the effects of the government’s cooling regulations.

In a statement, Colliers International said developers’ sales volume of 1,332 units for December had come in within expectation as positive economic conditions were seen to keep sales volume above the 1,000-unit level.

Year-end festive and school holiday season, however, were expected to moderate December’s sales volume from November’s 1,915 units sold.

The real estate services provider added that 4Q10’s sales figure, which is 18.6% higher than the sales volume for 3Q 2010, is probably the key triggering factor for the latest round of cooling measures announced on 13 January 2011.


Pick Up in CCR Sales

While units in the OCR continue to dominate December’s primary market activity, accounting for 61.4% of all units launched and 45.0% of all units sold, there was a noticeable increase in the number of units sold in the CCR, which exceeded the 248 units released by developers during the month.

In all, 449 units were sold in the CCR, up 106%. This was boosted mainly by two projects – D’Leedon which sold 180 units and Robinson Suites which sold 157 units – which together accounted for 75% of the month’s new CCR sales.

Indicating the pick-up in investor confidence in the CCR where the price rise has lagged behind properties in the RCR and OCR, a total of 75 units (non-landed only) were transacted at above the $3,000 per sq ft price level in December, significantly higher than the 11 units sold in November – and is the highest number of deals closed at above the $3,000 per sq ft level since the 103 units sold in December 2007.

The most expensive transaction was for a unit at The Ritz-Carlton Residences Singapore Cairnhill which went for $4,307 per sq ft.