Oct developer sales probably just 700-800

Source : Business Times – 5 Nov 2009

Estimate is down significantly from September’s 1,143

A BT poll this week of major developers as well as agents that marketed projects actively in October showed that about 660 private homes were sold in the primary market in October.

Developers reckon that, including other developments on the market, the total tally for primary market sales last month could come in at about 700-800 units – down significantly from the 1,143 private homes sold in September.

Developers’ monthly home sales peaked at 2,772 units in July this year, according to official data from Urban Redevelopment Authority. Its figures on developer sales for October will be released on Monday.

Market watchers noted that October was generally a quieter month, with developers launching fewer units as well as recording slower sales.

‘Things have become more cautious, after the constant messaging from the authorities advising home buyers that there’s no need to rush, that they should take their time and that there’ll be enough supply,’ said a property consultant who declined to be named.

Most developers would have sold fewer homes last month compared with September, unless they had released new projects during the month.

Far East Organization may possibly have sold the most homes last month. It told BT that it sold 173 private homes, more than double the September result of 78 units.

The 173 figure is made up of 162 units in uncompleted projects (including 13 in joint venture projects) and 11 units in completed developments. Far East’s top seller last month was Cyan, which is located along Keng Chin Road in the Bukit Timah area, with 76 units sold.

Cyan, which was released last month, is priced at $1,850 per square foot on average. Far East’s other better selling projects in October included Silversea along Marine Parade Road, and Mi Casa in Choa Chu Kang.

A joint venture involving Koh Brothers, Heeton Holdings, KSH Holdings and Lian Beng Group is said to have sold 50-plus units at Lincoln Suites at Khiang Guan Avenue in October. More than 65 units were sold at Suites@Guillemard last month.

Ho Bee Investment executive director Ong Chong Hua, who reckons that developers sold about 700-800 homes in October, said that sales volumes would ease in the fourth quarter of this year.

However, prices are unlikely to drop, he added.

‘If you look at the competitive bids at state land tenders, there’s no reason for developers to price their projects cheap. We’re generally optimistic about the market going forward.’