January 2010 saw a total of 1,476 private residential units sold. This translates into  almost 1400% more than the number sold in January 2009, or over 300% more than the figure in December 2009. This demand is set to continue into 2010 as the number of units sold exceeded the number of units launched.

“The middle to high-end markets are certainly moving,” observed PropNex CEO Mohamed Ismail. “76% of the properties sold were above a median price of $1,000 psf, a statistic not seen for over thirty months.”

He felt that that this trend will continue well into 2010 for two reasons: one being that the focus is shifting to the middle to high-end markets, and secondly because the median prices for the mass market properties are also likely to breach the $1,000 psf mark.

This assumption is based on the selling prices of the two recently sold plots of land at Serangoon Avenue 3 and Upper Thomson Road, which were both well above $500 psf.

“So factoring in this land cost, an additional $270psf for construction costs, and all other related costs including the developers’ profits, we could see a $1,000 psf selling price benchmark for 2010,” he explained.

“It is worth pointing out that only four projects launched over 100 units each in January 2010,” he adds, referring to Cube 8, RV Edge, The Shore Residences and Urban Suites, “and all of them had a median price of over $1,000 psf.”

“In fact,” continued Ismail, “Urban Suites is a high-end project and it sold 88 units at a median $2,506 psf.”

Incidentally, the four projects that launched over 100 units each also chalked up the most sales in January, accounting for 33% of the total sales for the month.

“There is no doubt that we are now firmly ensconced in an investor’s market,” stated Ismail. “And we can see developers are already starting to realise this with a slew of projects that have recently been launched or that will be launched very soon,” he says, referring to projects such as Altez, Centennia Suites and The Estuary.

Ismail expects prices of private residential properties to maintain their buoyancy, given that many of the new developments that are going to be launched soon have median prices of between $1,000 psf to over $3,000 psf.