Market watchers have warned that home buying demand for the rest of 2012 could slow, according to Channel News Asia. This is mainly because most of the repressed demand for property has been settled. With six Executive Condominium (EC) plots up for tender, analysts predicted a decrease in mass market homes.
Lim Yong Hua and his family have been searching for a home and recently purchased an EC unit in 1 Canberra, Yishun for over S$900,000 (US$710,000) . He plans to sell his HDB house in order to raise enough funds to cover payment for the EC.
According to the Urban Redevelopment Authority, 2,100 EC units were sold between January and May 2012. Most of the buyers of these EC units have upgraded from public housing flats. HDB resale prices have risen by over 80 per cent, prompting home owners to buy private residential properties.
Developer of 1 Canberra Land, MCC Land, has noticed a significant decline in visitors in the showflats. According to Channel News Asia, the demand for ECs are likely to stay stable in the meantime.
Richard Nah, senior manager of MCC Singapore, advised to look at the current pricing of ECs and beyond.
Donald Han, special advisor at HSR, believes the window of EC launches will remain good for developers. He suspects land prices may come off slightly this year, compared to the prices set a few months ago.
Property analysts said that the new land supply for the second half of 2012, which could well exceed 3,100 EC units, may pressure the developers of mass market projects. If the developers overprice it, Singaporeans can opt to purchase a new alternative in the form of ECs, according to Mohamed Ismail, CEO of PropNex.
PropNex expects a fall, up to five per cent, in prices for the mass market home in the second half of the year.
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