Private home sales slump in December with fewer property launches

Private home sales slump in December with fewer property launches

Property developers sold just 384 new private residential units in December, compared with the 759 sold in November, according to data released by the Urban Redevelopment Authority.

SINGAPORE: Sales of new private homes fell by nearly half in December as fewer projects were launched in the traditionally quiet year-end period.

Excluding executive condominiums (ECs), property developers sold 384 units last month compared with the 759 units sold in November, data from the Urban Redevelopment Authority (URA) showed on Friday (Jan 15). Including ECs, 508 units were sold, down from November’s 945 units.

Most of the units sold were in suburban areas.

Only 173 units were launched in December, compared with 733 units the previous month.

Meanwhile for all of 2015, developers managed to sell 7,529 private homes, which was a slight increase from 7,316 in the previous year. These figures exclude ECs.

Despite various cooling measures still in place, analysts have said the figures show properties in good locations will see a strong take-up rate, so long as they are priced attractively.

For 2016, one analyst expects sales of private homes to be similar or marginally better than in 2015.

Mr Mohamed Ismail Gafoor, CEO of PropNex, said: "The outside core central region, which is the mass market component, did very well. And when we drill down to look at the buyer's profile, a large group of people are the public housing upgraders of the mass market and coupled with investors who are prepared to have a lower outlay in their investment properties.

"I think this year, the number of overall transactions will be in the region of 8,000, which should be better than 2015."

Source: CNA/cy/ms