Developers sold fewer homes in August than in July but the number of units sold is still solid, according to the Urban Redevelopment Authority.
The purchasing frenzy that animated the sales of housing units in July tapered off in August as 1,699 new private homes changed hands. That can still be considered a good figure since only 325 flats were sold in August 2008. However, it is way below the 2,772 units sold at breakneck speed in July.
The month-long observance of the Hungry Ghost Festival may have caused the slower home sales pace since some developers were prompted to lie low because superstitious home-seekers stayed away.
Some resistance in the prices of flats also contributed to last month’s slower sales pace, with potential purchasers thinking twice about committing their money in light of surging prices.
At several projects, home seekers backed out on sales transactions probably because they felt that the prices for the flats were too high or they had hang-ups with loan acquisition. They lose 25 percent of the money they deposited in such a situation.
This has happened in Centro Residences, which is located in Ang Mo Kio, and some other recent launches. Centro Residences sold 87 flats as of month’s end in July and 17 more units in August with a median price of $1,231 per square foot (psf). Records show that total sales as of today stands at 91, indicating that 13 out of the possible 104 units sold were returned.
Also, data for August showed that there are still three unsold flats in Optima @ Tanah Merah, a supposedly fully sold out 297-unit condominium in the east side of Singapore.
Overall, however, the figures for last month were still very solid, particularly given the poor economic condition.
Home sales are expected to be slow paced for the rest of 2009, though, following the Government’s introduction of measures to calm the fast-rising property market and prevent the formation of speculative bubbles.