Sales of private homes in July 2011 rose nearly 40 percent month-on-month to 1,954 units, including executive condominium (EC) units, indicating signs of improvement from June’s subpar performance.
Excluding EC units, sales of private homes rose to 1,386 units, up 17 percent from 1,182 units in June.
“This hike in sales volume was led by two EC projects. Riverparc Residence at Punggol Drive sold 322 units at a median price of S$694 psf out of the 504 units launched in the month. Another EC, Blossom Residences, being planned along Segar Road, sold 192 units at a median price of S$702 psf,” said Tejaswi Chunduri, real estate analyst at PropertyGuru.
In addition, Skyline Residences in the rest of central region (RCR) sold 167 units at a median price of S$1,902 psf, while The Miltonia Residences in the outside central region (OCR) transacted 124 units at S$871 psf.
“This hike in sales volume for private homes could be due to the ongoing Hungry Ghost Month, which might have prompted some superstitious buyers to buy homes in July, ahead of the traditional inauspicious home-buying period.”
She added that that the suspension of land sales for DBSS projects by Minister Khaw Boon Wan “would have probably affected in boosting sales in the mass to mid private property market.”
Going forward, she expects sales in August 2011 to be affected by the on-going Hungry Ghost Festival and estimates total sales of approximately 1,500 units.
The increase in the supply of BTO flats, along with the rise in the household income ceiling for BTO flats and ECs is also expected to impact the private property market, particularly the mass market projects.
“External factors such as the recent US and Eurozone financial debacle might point to negative buying sentiments and force property investors to adopt a cautious approach.”
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