Sales of new private homes are poised for an increase in August from a month earlier.
Analysts expect around 600 to 700 new private homes to be sold in August.
In July, 481 new private homes were sold, down 73 per cent from a month ago.
August has traditionally been a slow month for new home sales as it coincides with the Hungry Ghost Festival.
The few launches in August, like Tembusu in the Kovan suburbs, are expected to prop up sales.
Analysts also expect prices of homes in the city fringes and suburbs to see modest improvements.
Meanwhile, they expect prices of luxury homes, those above S$2.3 million and located in the city, to see a correction of between 3 and 5 per cent.
Experts also said that sales incentives like discounts and rental guarantees may no longer be effective after recent loan measures were introduced in June.
Christine Li, research head at OrangeTee, said: “We know that developers are not ready to slash prices. because even with a 5 per cent discount, not many buyers can qualify for the loan quantum they want.”
Source : Channel NewsAsia – 12 Sep 2013