URA July Home Sales Figures Show Continued Price Rise

Source : Channel NewsAsia, 15 Aug 2007

More private homes were sold in July, compared to the month before, and at higher prices as well, according to the latest data from the Urban Redevelopment Authority (URA).

Analysts are, however, predicting a slower month of August due to uncertainties in the financial markets caused by the US sub-prime crisis, coupled with the traditionally slow Hungry Ghost Month.

The latest private home sales data showed that 1,378 new units were sold last month, nearly 20 per cent more than in June. And over 70 per cent of the projects sold over the past two months fetched higher median prices in July.

“The prices were on the whole better, and the volumes were also better. It’s consistent with the trend of the last quarter and it reflects the fact that Singapore is doing quite well selling itself a place to invest,” says Colin Tan, head of research from Chesterton International.

“In this current up-cycle, I think there has been more investment buying rather than speculative buying because we do not hear of so many stories of people buying properties, and then maybe flipping it within a week,” he continues.

Analysts also point out that an increasing number of apartments are now fetching more than S$4,000 per square foot, a benchmark price hardly seen before this year.
According to property consultancy Knight Frank, 73 such units were sold in July, compared to the 16 sold in June, at projects such as Scotts Square and The Orchard Residences.

A unit at The Marq on Paterson Hill fetched the highest price thus far, at S$5,100 per square foot.

But market watchers say August is likely to see a dip in the numbers of units sold.

“Looking forward in August, I think the numbers will probably be more subdued, due to a lesser number of projects that will be launched, (with) August traditionally being the Lunar Ghost Month, as well as the US sub-prime situation that has affected both the stock markets and some sentiments in the property market,” says Dennis Yeo, managing director of Colliers International.

Private home prices have overall risen some 13 per cent in the first six months of this year.

The URA started putting out more comprehensive sales data last month, in a bid to bring greater transparency to the property market. These figures are now updated on the 15th of every month. - CNA/ac