The property market was quiet during the Lunar Seventh Month this year, according to real estate services company Colliers International.
Only one property was sold, out of a total of 34 properties put up for auction sale, for S$1.66 million.
This is comparable to the same period in 1998 – the year of the Asian Financial Crisis – which saw two properties sold for S$1.65 million out of the 29 properties put up for auction sale.
The Hungry Ghost Month this year also saw the lowest the number of properties put up for sale since 1998.
Grace Ng, deputy managing director of Colliers International, explained: “This is mainly due to the current market conditions and buyers’ sentiment, instead of the superstition associated with the Hungry Ghost Festival.”
“The result of the government measures introduced since January this year has impacted the auction property market and reduced the number of residential properties put up for auction sale,” she added.
Colliers International noted that many owners now prefer to rent out their properties to generate a better yield, as compared to depositing the money in the bank, which earns them an interest of less than one cent per annum.
Commenting on the current outlook, Ms Ng said that property buyers are holding back amid worries about a double-dip recession.
Meanwhile, sellers are unlikely to make significant adjustments to their asking prices, as they have a stronger holding power due to the low interest rates, which are expected to remain low for the next two years.
“Nonetheless, when the market conditions improve and the market is more stable, owner occupiers and investors are expected to continue to buy property due to the long-term capital appreciation and stable returns,” said Ms Ng.
Source : Channel NewsAsia – 29 Aug 2011