Residential sales volumes to ease to 1,000 units in February

Despite the strong take-up in January, potential buyers are largely still expected to remain prudent and price-sensitive.

According to Colliers International, encouraged by the strong take-up in January, developers of mass-market projects are likely to continue with the launch momentum in February 2012. Also, with the Government monitoring the market closely, it would also be in the interest of developers to proceed with their launches instead of at a later date when prices may come under pressure. This is in view of the ample land supply for new homes development, the uncertain economic outlook and buyers’ cautious stance.

Meanwhile, market activity in the CCR and RCR is expected to remain low.

Ms Chia Siew Chuin, Director of Research & Advisory at Colliers International noted that demand is expected to be somewhat supply driven, depending on the product and locational attributes of upcoming project launches. Projects with unique selling points and reasonable pricing are expected to be well-received. Nonetheless, potential buyers are largely still expected to remain prudent and price-sensitive. “Hence, buying decisions could be stalled on the back of downside risks and buyers’ general tendency to hold back for price corrections. Hence, developers’ launch and sales volumes are expected to ease from January’s level to hover around 1,000 units in February 2012,” she added.

Li Hiaw Ho, Executive Director at CBRE Research expects the sale of mass-market projects to remain healthy. Developers will continue to be innovative in the lifestyle options for new projects while at the same time, offering attractive discounts to negate the additional buyer’s stamp duty. “Forthcoming new launches include Bartley Residences, Seletar Park Residence, Palm Isles and Sky Habitat,” he said.