For the second time, the uncompleted private homes’ sales took another fall in September after hitting the high record of 2,772 units sold last July.
Last month, a total of 1,143 units were sold, which is a 36.6 percent drop in sales from August. According to market watchers, this activity level is more sustainable as it goes forward.
In Q3 alone, the market recorded 5,719 sold units, which was higher compared to the entire sale of the previous year. However, since then, the said activity tapered off. Observers said that this activity will unlikely examine the record of 2,772 units sold in July going onwards.
The reason behind it is partly because of the anti-speculative measures of the government that probably drove speculators away, analysts said.
Also, during this time, a number of developers delayed their new launches in the property market during the seventh month of the lunar period, which is usually regarded as the market’s low season.
Market watchers state the contained demand seen during the last couple of quarters has faded out. Also, they expect the sales of private home to have a range of 800 to 1,000 units per month for this year’s last three months.
The development project that recorded the highest number of sold units in the previous month is the Hundred Trees located at West Coast. It was launched with 350 units, wherein 327 of these units were sold at S$941 per sq. ft. (psf)
Another project that gained strong sales was the Interlace project at Alexandra Road, which sold a total of 243 units at S$1,047 psf.
In September, only 99 units of high-end homes, with a price of over S$1,500 psf, were sold. The recorded number was an abrupt drop from the sale of 421 units in August.
For the meantime, properties with a selling price of S$1,000 psf and below may perform well, but there could be more high-class launches in 2010, Analysts said.
Managing Director Donald Han of Cushman & Wakefield stated, "We are going to see us being placed as a cheaper alternative for some (investors) to put their investment dollar into Singapore”.
He added, "With the opening of the integrated resort, with more high net worth investors coming to Singapore, we think the higher mid-end, right up to the luxury segment of the residential market, would probably see better reception.”
Observers expect the prices of home to increase about 5 percent in the fourth quarter, following the strong run-up during the previous three months. These prices went up sharply by 15.9 percent in the third quarter.
"Now with the brightening economic outlook, buying momentum could still be sustained as buyers are now more confident of their ability to service their housing loan in light of greater job security", stated Agency & Business Services, Colliers International Deputy MD Grace Ng.