Sales of private homes for 2008 showed a decline, registering a total of 13,335 units sold as of November 2008 or 35 percent of the 38,100 units transacted last year, according to DTZ’s fourth quarter report.

October and November in particular, witnessed dismal sales with only 112 and 192 units sold in the primary property market respectively, compared to the monthly average of 444 units sold in the first nine months of the year.

“The dramatic fallout of US financial behemoths in September further depressed the residential market which had been cautiously subdued in the first three quarters of 2008,” the report states.

DTZ report also notes that the private property market in 2008 witnessed a higher proportion of purchasers with HDB addresses buying mass market developments for occupation purposes only.

The figure for 2008 is 37 percent, up 15 percent from 2007.

In the meantime, private property prices continued to decline with prime non-landed properties being the hardest hit.

Prices of non-landed freehold private homes in the prime districts fell by 14.0 percent quarter-on-quarter in the fourth quarter of 2008.

On the overall, the average prices of freehold non-landed private properties have fallen by 21.6 percent year-on-year to S$1,160 per sq ft.

Meanwhile, prices of freehold non-landed homes outside of the prime districts also fell by 9.3 percent quarter-on-quarter or 10.5 percent year-on-year.

Landed housing prices also fell in the third quarter, though less drastic, falling at between 3.8 to 5.7 percent quarter-on-quarter or between 1.3 to 2.9 percent year-on-year islandwide.

Rents of non-landed private residential properties continued to head southwards after showing a correction in the third quarter of 2008, with prime areas the hardest hit as more expatriates are repatriated.

The average monthly rents of prime non-landed homes decreased 9.4 percent quarter-on-quarter or 9.2 percent year-on-year to $4.36 per sq ft.

In contrast, rents outside the prime districts held up better with an increase of 2 percent year-on-year due to tenants moving away from prime locations to suburbs.

While DTZ expects sales to remain low for 2009 due to the economic uncertainties, it notes there are bright sparks ahead.

“Housing loan rates are low despite more cautious lending from banks, and there are investors waiting to enter the market when prices have fallen to attractive levels,” Margaret Thean, DTZ’s executive director, says.

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