PropertyGuru.com.sg, Singapore's leading property portal and a flagship website of PropertyGuru's Network – Asia's Property Guru
More buyers backing out of property deals
Apr 23, 2012
PropertyGuru.com.sg : By Romesh Navaratnarajah:Buyers of around 107 new homes changed their minds last month and returned the units to developers, according to a Goldman Sachs report. In addition, the global financial services firm said that 100 homes were returned in February. The report noted that the number of home buyers backing out shows that even in a hot property market, some consumers still get cold feet. Meanwhile, in a Straits Times article, some experts highlighted that it is normal to see certain units returned every time a project is sold. Mohamed Ismail, Chief Executive of PropNex, said there were no cooling measures introduced since December last year, which could mean that many buyers backed out due to personal reasons. "It's a glaring number but there's nothing to worry about. It's common to have a handful of units being returned every month of each project," he said. Nicholas Mak, Head of Research at SLP International Property Consultancy, said many of the units returned included shoebox apartments. "Sometimes, people are under 'peer pressure' at crowded showflats," he said. "They go home and speak to more people and decide not to buy it. They'd rather forfeit the 1.25 percent than regret buying it."