Singapore home sales in June up 80% from May

June was the best performing month in terms of home sales since the property market tumbled last September, according to numbers released by the URA on Tuesday.

Altogether, 801 private homes were sold, a jump of 80 per cent from May.

But there were also more units launched. The number of units launched in June leapt 125 per cent from May to 1,069 units, meaning that there were more unsold properties in the market.

However, analysts said this would not deter developers from launching even more units in July to capitalize on the momentum, before the arrival of the Hungry Ghost Month.

Colliers International expects around 1,300 units to be launched in July, as developers pre-empt the traditionally slow-moving 7th lunar month in August.

In June, most transactions occurred in the suburban regions while prime locations saw some weakness in sales. No units valued at S$4,000 per square foot or more changed hands last month.

Nicholas Mak, director of Knight Frank, said: “The pick-up is predominantly in mid-tier mass market, because the buyers are owner occupiers. Residents in HDB estates around private condos for sale are forming the backbone of the demand.”

Tay Huey Ying, director for research and advisory at Colliers International, said: “In the current uncertain economic climate, developers are going to continue to delay launches of higher-end projects and likely to focus on mass-market tiers.”

With the suburban market being a price-sensitive one, analysts see developers continuing to employ pricing strategies.

Knight Frank’s Nicholas Mak said: “Developers must price their products quite attractively to generate sales. Any increase in prices, especially a sharp increase, will chase away buyers.”

Prices may be seen softening, but analysts say there will not be a free-fall as underlying demand will put a cap on how far prices may dip. – CNA/ir

Source : Channel NewsAsia – 15 Jul 2008

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