Residential

Private home sales jumped by 42.8% in January

A total of 2,013 private homes excluding ECs were transacted in January, up 42.8% from 1,410 in December 2012. Specifically, the OCR constituted 1,287 deals or 63.9% of the total sales, the CCR constituted 350 deals or 17.4% and the RCR constituted 376 deals or 18.7%. The increase in private home sales is a result of increased demand from buyers trying to avoid the latest cooling measures before they take effect and the high discounts and rebates developers offered after the cooling measures to encourage sales. 60% of these 2,013 units were sold before the measures took effect on Jan 12 while the rest were sold from Jan 12. Some developers such as Q Bay Residences and D’Leedon Residences offered discounts of 5-7% and up to 15% respectively. Sales of ECs, however, saw a 69.8% fall to 256 transactions, bringing the total number of private homes sold including ECs to 2,269 units.

Sales in February, however, are likely to fall to around 1,000 units given the usual slower uptake during Chinese New Year. Looking further ahead, the sales volume is likely to be around an average of 1,500-1,800 transactions per month in H1 2013. Nevertheless, demand for private homes with good location and attractive pricing (especially for small homes) is likely to remain steady.

(Source: Business Times)

Redas: Developers worried about latest cooling measures but understand reason

Chia Boon Kuah, the new head of Redas, had stated at Redas’s annual Spring Festival lunch that while developers are concerned about the latest cooling measures given the limited land supply in Singapore coupled with high development costs and the current maturing property cycle and uncertain economy, they understand the government’s plan for “a soft landing of the property market” and will thus support it. Lim Ee Seng, the second vice-president of Redas and Frasers Centrepoint chief executive, also predicted a stabilisation of prices with transaction volumes being similar to that of last year’s. Wong Heang Fine, the former head and chief executive of CapitaLand Residential Singapore, also stated that it is too early to say if the cooling measures have achieved their desired effect.

(Source: Business Times)

Commercial

Sale of Park Regis S’pore undergoing negotiations

Following the closing of an expressions of interest (EOI) exercise for Park Regis Singapore at New Market Street/Merchant Road, negotiations of the sale is said to going on. Potential buyers of the 203-room hotel and a seven-storey office block with 42,000 sq ft NLA is said to include CDL Hospitality Trusts (CDLHT), an Indonesian party, a local property investor and an international hotel investment group. The property which is built on a site with a remaining lease of 94 years could potentially be sold for $220-230 million.

(Source: Business Times)

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