More people are buying resale waterfront and city homes in Singapore.
CB Richard Ellis (CBRE) said secondary sales of homes in the prime inner city districts, such as Marina Bay and Sentosa, reached S$750.8 million last year.
This is higher than the average secondary sales levels of about S$738 million between 2005 and 2008.
Compared with new sales last year, resale transactions in the prime inner city and Sentosa districts were 15 per cent higher than new sales in those areas.
About S$652 million worth of new homes were sold.
CBRE said the healthy resale volume and transaction values show ongoing and sustained demand for homes in the new prime areas.
CBRE’s Executive Director for Residential, Joseph Tan said the convenience of working and living within the city is a major pull.
He said the limited number of new launches in the inner city district is an added draw.
The number of new, non-landed homes sold in the prime inner city and Sentosa precincts was 286 last year. This compares with 482 units sold in the resale market.
CBRE said the most popular development was Caribbean@Keppel Bay which sold 200 units. This was followed by The Sail@Marina Bay, which sold 128 units.
In the first five months of this year, resale demand reached 246 units or about half of last year’s volume.
CBRE believes that the ongoing demand for residential units in those areas could prompt developers to convert or redevelop older office blocks to high-end residential uses. Examples include Starhub Centre and 76 Shenton Way.
CBRE estimates that about 1.3 million square feet of offices will be converted to mainly residential use up to 2013.
Source: Channel News Asia, 31 May 2010