Singapore's 2009 private homes transactions grew by 131%

Country manages jump in private homes transactions despite 47% plunge in quarter-to-quarter sales in 2009 Q4.

For the whole of 2009, the total number of transactions amounted to 30,429, 131% more than that in 2008. However, it is lower than the record 37,304 transactions recorded for 2007, according to a study by DTZ Research.

Transactions of luxury homes
An increased proportion of higher-priced homes changed hands in Q4 2009 as interest in the higher-end tiers grew. Unit purchases of $3m and above constituted 8% of all transactions in Q4 2009, more than the 7% and 5% in Q3 2009 and Q2 2009 respectively. The share is however lower than the 12% recorded during the peak in Q4 2007.

Sub-sales of non-landed private homes
The proportion of non-landed sub-sales to total non-landed transactions inched up slightly to 13% in Q4 2009 from 12% in Q3 2009. For 2009 in total, the proportion is 14% which is a three-year low but higher than the 2-11% between 1998 and 2006.

The median sub-sale price of non-landed private residential properties increased by 3.8% to $1,090 per sq ft in Q4 2009, from $1,050 per sq ft in Q3 2009. For the full year, the median sub-sale price rose 24%.

In Q4 2009, projects which saw the highest number of sub-sale transactions were Casa Merah and Ferraria Park Condominium. Both projects were granted Temporary Occupation Permit (TOP) in Q3 2009.

Median prices of Casa Merah sub-sale units increased by 3.8% quarter-on-quarter (QOQ), from $770 per sq ft in Q3 2009 to $800 per sq ft in Q4 2009. Ferraria Park Condominium experienced a similar 3.5% QOQ rise in prices (Table 1).

Some projects in the west and central areas saw higher increases in sub-sale prices. The median prices of The Metropolitan Condominium and Botannia went up by 4.9-6.6% while median prices at The Parc Condominium and The Oceanfront @ Sentosa Cove saw an increase of 7.8-8.8% QOQ to $939 per sq ft and $1,780 per sq ft respectively.

Residential status of purchasers
Foreigners accounted for 12% of total purchases in Q4 2009, up from the 10% share in the previous quarter. Their share in 2009 is 9%, which is the lowest since 2004.

Purchases by companies constituted 3% of total transactions in Q4 2009 which is still some way off the 10% recorded in Q3 2007 when companies were investing in bulk.

The share of Singapore PR buyers among total private home purchasers climbed to 15% in Q4 2009, from 13% in Q3 2009. PRs’ share of private home purchases in 2009 was constant for the fourth consecutive year at 13%.

In Q4 2009, Singaporeans’ share of private home purchases was 70%, lower than the 75% in Q3 2009. For 2009, Singaporeans’ share was 76%. This is the highest in four years since 2005.

16% of private residential homes priced above $1.5m were bought by foreigners in 2009, compared to 6% for homes up to $1m. The 16% share is still lower than the 20% in 2006 when the property market was warming up.

Singapore PRs bought the most number of units in Hundred Trees and Melville Park in Q4 2009.

Non-Singaporean purchasers
Buyers from the top four countries, namely Malaysia, Indonesia, China and India, made up 69% of total transactions by foreigners and Singapore PRs in Q4 2009. This is lower than the 76% in Q2 2009 and 73% in Q2 2009.

In the second half of 2009, there was an increase of purchasers outside the top four countries, in particular from United Kingdom, Korea and Australia.

Indonesians accounted for a 17% share of total transactions by non-Singaporean buyers in Q4 2009. Their share in 2009 was 19%, similar to that in 2008. It is the lowest proportion since 1995 when caveats were made available for analysis.

Malaysian buyers took the lead in all four quarters of 2009, a position held by the Indonesians between 2004 and 2007. Malaysian buyers accounted for 25% of total transactions by foreigners and Singapore PRs in Q4 2009, and 27% for the whole of 2009.