Thursday, July 12, 2012

Singapore buyers still hot for homes up to S$1 million

New homes priced between S$500,000 and S$1 million are still the most popular among Singaporean buyers, according to data from the URA (Urban Redevelopment Authority).

A total of 3,361 units or 46.3 percent of all new residential transactions done in 1H2012 were found to fall within this category, up from 40.1 percent over the same period last year.

Consultants noted that these homes appeal mainly to HDB upgraders who sold their flats to take advantage of the high cash-over-valuation (COV).

Meanwhile, demand for new projects under S$500,000 rose more than three-fold from last year to 384 units at the end of 1H2012.

Homes priced from S$1 million to S$2 million are the second most popular among buyers, with 1,910 transactions recorded in 1H2012 or 26.3 percent of all new purchases.

But the figures for 1H2012 still pale in comparison to those recorded two years ago – when new homes priced from S$1 million to S$2 million were the most appealing with 2,515 transactions, or 33.8 percent of total transactions.

Buyers have also become price conscious as reflected by the lower demand for homes costing over S$2 million.

For new homes priced between S$2 million and S$3 million, purchases fell 21.2 percent while those in the S$3 million to S$5 million and beyond S$5 million segments declined 21.3 and 50 percent respectively.

Industry watchers expect the trend to continue as buyers switch to homes priced under S$1 million, given the entry of smaller projects and suburban developments in the coming months.

View the original article here

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