New home sales in Singapore have hit record highs as the countryÃ¢â¬â¢s property market continues to defy expectations. Research from a leading international property company found that low interest rates had resulted in a large increase in new home sales in the first quarter of 2012.
Keep reading to learn more about the booming Singapore new homes market.
Q1 sales of new property in Singapore exceed expectations
The data from Savills showed that new home sales in Singapore in the first quarter of 2012 were higher than the full year sales in 2000, 2003, 2004 and 2008. Including executive condominiums, 8,251 units were sold in the first three months of this year.
Alan Cheong from Savills Research said: Ã¢â¬ÅUndaunted by new cooling measures and a gloomy economic outlook, primary home sales rocketed to a record high of 6,682 units in quarter one, bearing testimony to the strength of underlying demand from first timers and Housing Development Board (HDB) upgraders.Ã¢â¬Â
However, purchases from overseas property buyers fell by 10 per cent from the previous quarter. This has been attributed to the effects of Additional Buyers Stamp Duty which was implemented in December 2011.
Mass market projects drive new home sales
The sharp rise in new home sales was driven by several mass market condominium projects which accounted for around 85 per cent of the total sales. New home sales in February rocketed to 3,142 units before falling back slightly to 3,032 units in March.
Savills expects more developers to fast track their new project launches in 2012 and 2013 to take advantage of the current sales momentum. The international property consultants also expects market interest for homes in prime areas of Singapore to pick up in the coming months as the price gaps narrow between the central and outside central regions.
However, Savills cautioned that the performance of new home sales will depend on the number of new project launches in future.
by Nick Marr