Analysts expect drop in October private home sales

Data for private homes sales are out next week but analysts are already expecting to see a drop in sales.

They say private home sales could cool by 15 to 20 per cent on-month to between 1,200 units and 1,600 units in October.

Buyers’ sentiment was strong in September with 1631 units sold, defying market expectations and perhaps even logic as Singapore was facing a technical recession and a spiralling eurozone debt crisis.

Experts now attribute the buoyant sales to the launch of large condominium development during the month.

A slight slowdown is expected for October as investors sober up to the realities of the global economic turmoil.

More importantly, they say developers are likely to have held back launches to reassess buyers’ price thresholds.

Cushman & Wakefield vice chairman Donald Han said: “My prediction for the rest of the year, which includes the month of November, is for the prices to remain flat. If we are looking into the high end luxury market, average pricing would be S$3,300 per square foot.

“If you are going into the mid-end component, the prices will range about S$1,800 per square foot. The mass market would be about S$850 to about a S$1,000 per square foot and then the executive condominium will range about S$750 per square foot.”

The official property price index shows that price increases slowed to 1.3 per cent in the third quarter. Some expect this to slow further in the fourth quarter to about one per cent.

But home sales could still pick up if the price is right.

International Property Advisor CEO Ku Swee Yong said: “Developers may have skipped the month of October to push out a significant big launch but I think there will be a rebound coming in November.”

Overall, the buying sentiment of private homes should remain steady and healthy this year.

Experts are even predicting that the total number of new home sales could even exceed last year’s figure of 16,292 units.

Analysts opine sales for December may dip due to the lull year-end holiday period which typically sees fewer project launches.

Source : Channel NewsAsia – 11 Nov 2011

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