Private home market declined amid the global crisis. However, in May, sales flourished, selling a total of 1,668 units. Nonetheless, industry experts believed this will not last for long if the economy will remain to decline. Experts are also worried with the weak rental demand.
Urban Redevelopment Authority data showed yesterday that home sales in May were only about 3 percent lower compared to sales in August 2007. Stock market rallied in mid-March, lower home prices and enormous liquidity probing were some of the reason why home sales were up.
Around 37 percent (617 units) of the 1,688 units sold were from CCR, which was due to discounted pricing from developers.
Though home buying sales increased, this alone could not promise a sustainable recovery in the market. Unless progression will take place, it may take a while before super-luxury launches will come out in the market. Affordability is still a main factor for buyers these days.
Additional research shows the same observation. Nomura Singapore is anticipating a W-shaped recovery in asset prices because there is still a rise in unemployment, fall in rents and increase in supply.
Grace Ng, the deputy managing director of Colliers, have found that the Singapore market is “a bit peculiar”. Singaporeans are not coming into the market because of the lowered prices; rather Singaporeans are coming because they see other Singaporeans going into the market. They are brought into the market not because of affordable prices but because of sentiments.