The Singapore property market is likely to experience a lull in sales during this year’s Hungry Ghost Festival, with the lack of major new launches.
During the festival, which runs from August 10 to September 7, superstitious people avoid major commitments such as purchasing a property.
This time in 2009, NTUC Choice Homes withstood superstition when it successfully launched its 590-unit Trevista in Toa Payoh. However, experts said it is unlikely to see similar key launches this year that will keep sales afloat.
The 642-unit Pasir Ris of City Developments is intended for release in Q3, but no exact date has been given yet, and no other main launches were planned over the weekend.
Mr. Peter Ow, managing director for residential services at Knight Frank, said that “this year’s Hungry Ghost month will be quieter because whatever needs to be launched has already been pushed out.”
There were only few new releases in the run-up to the event, with many units sold.
Only a few penthouses are left at the 46-unit Suites@Topaz in Potong Pasir after sales began last week, according to an industry source. Projects with less than 200 units could be launched this month if property developers are able to prepare all the essential documents, the source added.
Far East Organization’s (FEO) The Greenwich project saw brisk pre-festival interest over the previous week. FEO sold another 94 units of the 319-unit development after a private preview that started on August 2. A total of 174 homes have been sold, with the average price reaching $1,025 psf from $980 psf last Monday.
Mr. Steven Tan, executive director of the residential division of OrangeTee, believes that the anticipated quiet August will be underpinned by a lack of major launches and sentiment rather than by superstition.
“Nowadays, people don’t really care about the Hungry Ghost month. It’s all about the sentiment, which is not very strong at the moment,” he said.
Experts also said that a slow down in sales is mainly due to developers who are holding their prices.
“If I am pricing a project to sell, I would push it out now. There will be interest. But if I want to hit benchmark pricing, I have to be careful with the timing of the launch,” said Mr. Ow.