New property cooling measures did not spoil first-quarter home sales

February and March take-up rates were healthy.

According to Savills Singapore, despite the Singapore government releasing the seventh round of cooling measures in January, which was considered by market watchers to be the harshest to date, home buyers continued to snap up what units were available in the market. Mass-market home buyers in particular led the purchasing spree.

"In the immediate aftermath, developers pulled back launches, releasing just 261 private homes in February, an 88% nosedive compared with the same period a year ago and the smallest release since January 2009. Attractive discounts both on existing and new launches were also offered.

"Although the numbers appear low, February’s 708 new home sales was a good harvest, given the dearth of launches in the month. As a result, the stock of unsold launched units shrank from 5,251 in January to 4,878 in February. At the end of February, Q Bay Residences, the first project launched after the new curbs, achieved an 82% take-up rate (427 of 520 units released). La Fiesta, another major project launched in January, hit an 86% take-up by February (430 of 500 units released).

"Notwithstanding the latest cooling measures, the healthy sales numbers were a clear and unmistakable sign that the penchant for buying mass-market homes was still very strong. It therefore suggests that homebuyers would not wait too long on the sidelines, surmounting the increased hurdles, eg, the 7% ABSD for Singaporeans buying their second home," said Savills Singapore in its latest residential briefing report.

March also saw major projects hitting the market in stride. Bartley Ridge, D’Nest, Hillion Residences, Sennett Residence, The Trilinq and Urban Vista, all saw robust sales. At the biggest project, D’Nest, buyers snapped up 500 of the 650 units released within a few days of its preview launch.

"In view of the sheer number of units launched and the strong take-up, developer sales in March are likely to breach 2,000 units," predicts Savills Singapore.