A total of 2,067 new private home were sold in July 2012, an increase of 42% over June 2012. This comprises of 1,943 private residential homes and 124 units of executive condominiums (EC).
City centre homes or the Core Central Region (CCR) saw the steepest jump with an increase of 79%, month to month, with 253 units. V on Shenton contributed 144 units.
On the city fringe (RCR), developers sold a total of 181 units. There is only one new project launched in June, The Line @ Tanjong Rhu which found 13 buyers for the 62 units released.
Sales in the Outside Central Region (OCR) account for almost 8 in 10 of all homes sold. This suburban region where mass-market projects are located continued to drive primary-market sales. The 2 top-selling projects are Parc Centros in Punggol and Parc Olympia at Upper Changi.
In the EC market, 124 units are sold in July, contributed mainly by Tampines Trilliant’s 37 units.
Despite the pick-up in sales volume, the average resale capital value for prime luxury properties fell 2.9% to $2,380 psf in the second quarter compared to the first quarter. Resale capital values of typical prime properties also dipped 1.5% to about $1,350 psf.
With about 778 units completed in Q2, this supply has dampened overall yields. Average prime luxury rental values dipped 1.2% to $4.08 psf per month from first quarter while average typical prime rental values fell 2.2% to $3.16 psf per month.
Further falls in both rents and capital values over the next 12 months in the prime residential segment is expected amid lingering uncertainty in the global economy noted Ms Jane Murray, head of research (Asia Pacific) at Jones Lang LaSalle.