Several analysts have said that data for private home sales, which is expected to be released this week, could fall by 15 to 20 percent month-on-month to between 1,200 and 1,600 units in October.
Private home sales in September were strong, with buyers snapping up 1,631 units and defying market expectations, as the country faces the effects of a technical recession and a spiralling Eurozone debt crisis.
Experts now attribute buoyant sales to the launch of large condominium developments during the month. Thus, a slight drop is expected for October, as investors deal with the global economic crisis.
More importantly, analysts also said that developers are likely to hold back launches to reassess buyers’ price thresholds.
“My prediction for the rest of the year, which includes the month of November, is for the prices to remain flat,” noted Donald Han, Vice Chairman of Cushman & Wakefield.
“If you are going into the mid-end component, the prices will range about S$1,800 per square foot. The mass market would be about S$850 to about S$1,000 per square foot and then the executive condominium will range about S$750 per square foot.”
Meanwhile, the official property price index showed that price increases slowed 1.3 percent in Q3, with some expecting a further dip to one percent in Q4.
“Developers may have skipped the month of October to push out a significant big launch but I think there will be a rebound coming in November,” noted Ku Swee Yong, CEO at International Property Advisor.
Overall, sales of private homes should remain steady and healthy this year.
To contact the journalist, you may send your message to editor@propertyguru.com.sg