Property speculative activity declined in Q3: DTZ

Source : Channel NewsAsia – 24 Nov 2009

Property consultant DTZ said on Tuesday there was less speculative activity in the third quarter this year.

In a report, it said the proportion of sub-sales declined from 16 per cent in the second quarter to just 13 per cent in the third quarter.

Sub-sales, which refer to re-sales that occurred before the completion of a project, are usually used as an indicator of speculative activities.

Another finding by DTZ is that the price hikes in the private property market since the second quarter has resulted in the diminishing purchasing power of public housing upgraders.

The proportion of private home purchasers with HDB addresses declined to 37 per cent in the third quarter – down from the recent peak of 56 per cent in the first quarter this year.

But the figure is still higher than the 22 per cent seen in the last property boom in 2007.

According to DTZ, most purchasers with HDB addresses bought mass market projects like The Gale and Trevista.

Going forward, DTZ expects low sales activity for the rest of the year and even early next year due to the hike in prices and the government’s cooling measures.