Developers' sales rocketed 118% to 565 units

That's excluding executive condominiums.

According to PropNex Realty, developers sold 565 private homes, excluding executive condominiums (ECs) in January 2014, up over 118% from the dismal 259 units sold in December. This is largely due to the launch of two major developments—The Panorama at Ang Mo Kio Avenue 2 and The Hillford at Upper Bukit Timah.

Including ECs, developers found buyers for 610 homes, which also reflect a rise of 83% from the previous month’s figure of 333 units.

Analysing the figures, Mr Mohamed Ismail, CEO of PropNex Realty said: “Prospective homebuyers are exercising even greater caution in their capital outlay before committing to make the property purchase, more so now that there are numerous buying curbs in place; I believe that buyers will continue to be highly sensitive to properties with a higher overall quantum”.

In 2014, Mr Ismail refuses to rule out the possibility of having even fewer new private residential homes being transacted—as the impact of the curbs such as the TDSR and ABSD, are unlikely to wear off anytime soon.

Developer sales peaked in 2012 with over 22,000 transactions but slowed to about 15,000 in 2013. It could moderate further by 20 to 30% in 2014, judging from the trend in the second half of 2013.

Slower sales in new projects could have possibly led developers to price their projects more sensitively to reflect the current market sentiments.

“The TDSR has greatly cut down a buyer and/or investor’s leverage power by means of mortgage loan, as their purchasing power has been eroded. Moving forward, only those projects which are well-priced and strategically located could entice the buyer to make a commitment,” Mr Ismail comments.