Sales of private homes exceeded the 2,000-unit mark for the first time in nine months since July last year.
Based on the latest data presented by the Urban Redevelopment Authority (URA), there were 2,207 units sold last month on the back of resilient demand and positive sentiment.
According to several analysts, although volume of transaction surpassed market expectation, it is unlikely to be sustainable.
In April, private home sales were up 25.3 percent from the 1,761 units sold in March.
In fact, the total number of units sold exceeded the 2,084 units launched last month.
One of the leading performers in April was the Waterbank@Dakota by UOL, with 573 units sold at an average price of S$1,178 psf.
The Interlace by CapitaLand sold 144 units at an average price of S$1,067 psf.
The two developments, along with the 374 units sold at Tree House accounted for almost half or 49.4 percent of the total sales transactions.
The Orchard Residences at Orchard Boulevard was the most expensive unit sold in April, going for S$4,207 psf.
With mid-priced projects taking over the rein, luxury developments lost its appeal among home buyers, unlike the trend in recent months.
Chua Yang Liang, research head of Jones Lang LaSalle in Southeast Asia, said: “In a way, we can look at it as a second ring, second tee-off compared to the core central region. In terms of pricing, certain pockets are still lower than outlying suburban areas like Ang Mo Kio, Bishan. So there is that attractiveness – near to the city, and yet pricing is still quite affordable.”
With 1,044 units sold a month ago, home sales in the city fringe climbed 290 percent compared with the March figure.
Meanwhile, there were fewer new homes sold in other areas.
Sales in the mass market segment slipped one percent to 771 units, and only 392 new homes were sold in the city, down 45 percent from March.
Overall, the strong demand was attributed by market players to better economic and job prospects.
However, analysts cautioned that despite the positive sentiment, there are uncertainties ahead due to the euro zone debt crisis.
“The last 2 weeks has seen some cooling off. If you were to visit some of the showflats, the attendance has been small,” said Mr. Colin Tan, director and research & consultancy head of Chesterton Suntec International.
“I think developers recognise this, so when they price their projects, they will have to bear this in mind that they either have to push for sales or push for prices,” he added.
Looking forward, analysts estimated that quarterly home prices will grow by 1.5 percent to two percent.
CBRE expects demand of new homes for the second quarter to reach 4,000 units to 4,500 units.
They also expect that sales of new homes will hit between 13,000 and 16,000 for the whole of this year.