Property market is still resilient

PHOTO: Property market is still resilient
The Canopy.

Strong demand from buyers and low borrowing rates are expected to keep the local property market buoyant, despite a drop in the sales of new homes in June this year.

According to statistics released by the Urban Redevelopment Authority at the end of July, the prices of private residential properties in Singapore increased by 0.4 per cent in the second quarter of this year after falling by 0.1 per cent in the previous quarter.

Prices of non-landed properties in the Core Central Region and the Rest of Central Region - the prime residential areas - increased by 0.6 per cent and 0.4 per cent respectively in the second quarter, compared to a fall of 0.6 per cent for both market segments in the previous quarter.

For the Outside Central Region - the suburban areas where the mass-market developments are located - prices increased at a slower pace of 0.5 per cent in the second quarter compared to the 1.1 per cent increase in the previous quarter.

Local analysts believe that low mortgage rates, rising affluence as well as the increased supply of mass market condominiums and ECs have driven the residential market.

MCC Land's The Nautical in Sembawang has seen more than 75 per cent of its units sold while there has been brisk interest in The Canopy, an EC in Yishun, as well as MCC Land's new launches, One Canberra and Canberra Residences.

While the Singapore market remains hot for investors, some have also cast their eye across the Causeway. Malaysian property figures from Malaysia Property Inc, an agency that promotes Malaysia's real estate internationally, reveal that the total transaction value of real estate in that country was RM137.8 billion (S$55 billion) last year, up 28 per cent from RM107.4 billion in 2010.

The Hatten Group from Malacca - it developed the Dataran Pahlawan Melaka Megamall which is the biggest retail mall in Malacca - is developing the Silverscape condominium as part of its Hatten City project which is a mixed-used project comprising retail units, residences, hotels, an office tower, a resort and a shopping complex called the Elements Mall.

The Silverscape will be a high-end luxury condominium which will sit on top of the Elements Mall and offer four different configurations ranging from 517 to 1,140 sq ft.