Posh condo sales up in 2Q12

From three transactions last quarter, 2Q12 recorded eleven transactions above S$10 million each.

According to Savills Research, in the strata-sales market, highend non-landed homes returned to investors’ radars, partly due to the softening prices compared with the previous peak in 2007/2008. A total of 11 transactions above S$10 million each were recorded in Q2/2012, significantly higher than the three transactions in the previous quarter. In addition, two block purchases were made in the reviewed quarter – 14 units at Paterson Suites for S$65 million and 17 units at 8 Napier for about S$100 million.

In Q2/2012, the residential property market saw a total of S$4.0 billion worth of investment sales, representing 54.0% of the overall investment sales. On a quarterly basis, investment sales in the public and private sector increased by 44.5% and 93.4% respectively.

The level of participation in recent GLS land tenders showed that developers have become more selective due to the ample supply of land released by the government and sensitive to competition from existing/pipeline projects in the vicinity.

The collective sales market remained lukewarm with six deals totalling S$392.5 million in the reviewed quarter. As with the previous quarter, these sites mainly carried smaller price tags while some can be redeveloped with a commercial component. Meanwhile, boutique developers and contractorscum-developers continued to be active in this market, favouring sites located in the suburban areas and city fringe. This trend is likely to persist as smaller developers are generally priced-out of the large-ticket sites under the GLS tenders. Smaller sites also mean that developers can complete and sell the new project within a shorter time frame than the big developments.