Condo sales slump in August amid fewer property launches

The private home market returned to the doldrums in August, with sales of new condominiums down 56.6 per cent from the previous month, according to data from the Urban Redevelopment Authority (URA) released on Thursday (Sep 15).

Excluding executive condominiums (ECs), property developers sold 473 units in August, less than half of the 1,091 units sold in July. Including ECs, 805 units were sold, down from July’s 1,921 units.

The lacklustre sales came as developers launched 590 units, down from the 1,486 units (624 excluding ECs) launched in July. No new EC projects were launched in August.

According to URA, the five top-selling projects in August were: Treasure Crest EC, Sol Acres EC, Bellewoods EC, Lake Grance and The Trilinq. Treasure Crest EC sold 56 units in August 2016.

TEPID AUGUST DUE TO HUNGRY GHOST FESTIVAL, LACK OF MAJOR NEW LAUNCHES: PROPNEX

Real estate agency PropNex said transaction volumes fell in August due to the Hungry Ghost Festival and the lack of major new launches.

“There is also an inertia to commit as buyers remain on the sidelines due to ongoing measures and/or an anticipation of further price declines,” said Mr Ismail Gafoor, CEO of PropNex Realty.

With no changes to Government curbs on the horizon in 2016, PropNex said the private residential market is expected to remain soft.

“We expect new private home sales volume to be about 700 units per month, or exceeding 8,000 units for year 2016. Transaction volume will continue to be launch-driven; largely dependent on the price and location of the project,” the real estate company said.

Source : Channel NewsAsia – 15 Sep 2016

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