Private homes launched in August drop by 43.6%
But deeper analysis of the statistics would show that “pure” private homes launched during the month declined by just a meager 1%.
The number of private residential units launched in the month of August 2011 totaled 1,435 units, far below the 2,543 reported in the previous month, data from the Urban Redevelopment Authority show. Excluding executive condos however, pure private homes launched in July was just 1,437 units.
According to Cushman & Wakefield senior manager for Asia Pacific research Ong Kah Seng, the moderation of units released in August reflected that the surge in launched units in July was seemingly temporal and by August, this has been realistically reset notwithstanding world economic uncertainties and the seventh lunar month.
The expert said, at 1,435 units, this seems a moderate level of launch activity albeit the worldwide economic uncertainty which had become increasingly pronounced in August
However, it must also be noted that the significant 2,543 units launched in July comprises of 1,106 executive condominium (EC) units which were launched in July, Mr. Ong said.
“The exodus in ECs launched in July followed consecutive periods of limited new EC units launched before July and also, EC units are seemingly attractive lower cost alternatives in the face of record high condominium prices which challenged price affordability. ” Mr. Ong added.
Here’s more from Mr. Ong:
The Outside Central Region (OCR) accounted for the spotlight, with 1,157 units which were released by developers. Although this has moderated by 63% compared to that in July, it must be noted that in July, the 1,639 units comprised of 1,106 executive condominiums. Hence the no. of private condominium units released in August was in fact higher.
Some projects were released notwithstanding the severe worldwide economic uncertainties, reflecting that developers were keen in launching launchready projects as this was the onslaught of the significant worldwide economic uncertainty. It may be a good option in August to make these projects available in case the worldwide uncertainty worsens.
Moreover, private residential buying interest remains keen, or at least there is strong innate homebuying interest. Even if such projects were not actively taken up, they would be available for potential buyers who are actively doing their homework and waiting for an opportune time to purchase private residential properties.
This will expose their projects and can potentially be well absorbed during ‘opportune’ times as home seekers will have more confidence in buying properties they are familiar with at such opportune times.