The rise in the sales of new private homes
A high percentage of private home sales has been noticed in 2016 as the market prices as a whole fell. A lot of new buyers has taken advantage of the falling price trend in the market. It has been noticed that the developers were succeeded in selling out 8136 of new units in the last year. If compared to the rates of 2015, the selling increased by 9.4 percent in 2016 i.e. total 7440 units was sold last year and 8136 are sold this year. Although the number specified does not include the new executive condominiums (ECs). If we talk about the sales of last year i.e. 2015, they were quite high as compared to the sales of 2014.
It was tipped that the year 2016 will be a slow year, especially for the real estate. This statement is provided by the major property experts. However, this prediction has been declined by the developers as they had lowered the prices per unit in 2016. Hence, more buyers were attracted towards more buying.
Although the prices of Singapore Condo are declining in the past few years. These prices were approximately fallen by 3 percent in the last year. The rate of decline in the prices was 3.7 percent in 2015 and it was 4 percent in 2014. As explained by the executive director of SLP, Nicholas Mak, the reason for the increase of sales of two or three bedroom units is their affordability.
According to the straits times, the trend to buy new homes was solely because of the feelings attached to buying new homes and lesser rates of interest. However, it is seen that the total decline of the year was somewhat is in a plain contrast.
The drop in the units has been noticed by 57.3 percent in November 2015, with the selling of only 367 new homes out of 860. The transaction was lowered to 4.4 percent in December 2015. The major cause of this decline is a point when the developer has launched only 90 new homes. This value was quite less as compared to the launch in November that was consisted of 1363 new units. The launch of November was considered to be the lowest new unit numbers in the past two years.
The national director of JLL research and consultancy, Ong Teck Hui said that buyers will be strengthened in consideration to this. They will have the opportunity to buy at much better prices and will be driven by the perception of a bottoming out market having a pent-up demand. However, the speed of selling units was regulated in the last month with the selling of 231 units as a whole.
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