Data released by the Urban Redevelopment Authority revealed that developers were able to sell 765 condo units last October. If Executive Condominiums (EC) were to be added, the sales would reach to 855.
On a yearly basis, the developers were able to sell more last October 2014 than October this year. Last year, around 1009 units were sold, excluding Executive Condos.
With the cooling measures taking their toll, specifically the TDSR or Total Debt Servicing Ratio, analysts believe that the sales of condo will be at a plateau in the coming months more so that buyers today implement a wait-and-see approach.
Two key factors that were thought to contribute over the purchase of a unit are location and the price.
It should be noted that the sales data stated herein are purely based on the OTP or Option to Purchase that are issued by the developers to homebuyers and then directly reported to URA. The OTP does NOT necessarily leads to confirmed sales.
Option to Purchase is an option or right given by condo agents or vendors to purchasers to buy the unit or property being sold at a specified price and time. The time set by both the vendor and purchaser serves to be the validity of the OTP.
The purchaser, on the other hand, is tasked to pay 5% -10% of the unit price as a booking fee in order to avail the OTP. Then, the purchaser has the right to exercise the privileges set within the OTP if he/she decides to purchase the property.