Singapore Private Home Sales Drop Due to Cooling Measures in 1st Quarter 2013

    SINGAPORE, May 22, 2013 /24-7PressRelease/ -- Amidst of all the decrease in revenue the construction industry is still optimistic and are continuously developing projects that will suits everyone. They are making sure that the development in their field will go pass the current hardships that the industry is experiencing.

Jones Lang La Salle was quoted for the drastic drop of the revenue in the classified home sales that is for the first quarter of 2013. The revenue plunge was forecasted already that once the cooling measure takes place the drop in returns will happen. This is due to the surplus from the previous month. Based on the data released by URA 1,375 fresh units are sold but on the other hand only 1,158 units are introduced to the market by the developers. This only shows that the surplus from the previous month of March was added to the sales in April.

The huge decrease in the number of units sold in the leading district of Singapore namely in districts 9, 10, 11 shows a difference of 61% that is 144 unit lacking in the original forecast. Based on the Building and Construction Authority the supply in the construction industry is 29% lower than the previous quarter. Another factor to consider is the status of the global market. Most of the foreign buyers are experiencing adversity with their finances. And for the local market they most of them are engaged into consultancy, thus they are more careful in taking risks.

The allocation of budget from the government will be augment in 2013 this is due to the increase in the taxes for the lavish properties. And it will be felt in 2014 until 2015. This drastic move from the government have caused dearly to the growing capital gains. Mostly what were affected are the prime properties that are being offered and lesser impact to the ordinary market. This modification may be the cause of the drop in the buying power of the locals as well as the foreign investors.

Furthermore Jones Lang LaSalle stated that Singapore's central bank will implement much stricter rules regarding the amount of capital banks residential mortgage. This will result into more firm rules of the bank in terms of releasing and approving of the loans being applied.

Although the buying power of the elite market is still seen to further deteriorate because of the cooling effect and the changes that will come in the taxes for the properties. Experts are also looking into continuous drop of figures by 3 to 5% up to the end of the year.

The developers are going through rigorous brain storming and planning to come up with projects that will convince the market to invest into the commercial home properties despite of all the new implementing rules in the loan application and the /challenges that is being experienced by the construction industry.

Despite the current situation, the developers are giving out to offer more competitive sales techniques such as presenting a larger discount on the projects and partnering it with additional offers and promotions. The month of March shows the list of the most bought units from Senneth Residence, Dnest, Bartley Ridge, Hilton and Urban Vista. While on the month of February only 712 units were recorded for the sales of newly built homes. Keeping the optimism, the makers only sees this as one of the result of the cooling effect and as well as holidays. Since most of the clients are out on a vacation for relaxation. Another factor is that the developers are delaying the launch of the properties this is according to New Launch Singapore.

Bouncing off from the challenges from the months of February and March will show the seemingly asleep market for the construction industry. These challenges also shows that despite of the changes what it brought to the industry is just superficial and is just a short term problem thus definitely bringing back the strength of the market.

New Launch Singapore is but ready to face the start of the race. Ready for the market they are presenting their forthcoming projects which are built strategically on exceptionally locations and the prices for the units are tactically priced so as to compete in the market. In May 2013 The Midtown and Midtown Residences will be available and The Flow at East Coast and the KAP & KAP residence is also ready and the Hallmark Residence, Cluny Park Residence, LIV On Sophia, The sienna at Farrer, Ferra at Leonie Hill and Whitehaven at Pasir Panjang are also geared up.

Other than current launches, existing landed houses has also seen good sales this year such as Palms @ Sixth Avenue and Whitley Residences. HAUS @ Serangoon Garden was reported fully sold.

New Launch Singapore specializes on property launches in singapore that include Residential, Commercial and Industrial. Please visit us at http://www.newlaunchxpert.com.sg or call us at +65 6100 0877 for immediate attention.

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