This month’s Hungry Ghost Festival has slowed down property launches but may have less impact on home sales, according to Singapore Business Review.
More people are becoming less superstitious and with a favourable market, home sales are expected to rise, despite the traditionally inauspicious Ghost Month.
“People are less superstitious nowadays, especially among the younger generation. And if buyers like something that is launched, they may not want to delay the purchase until after the ghost festival as that unit may not be available then,” said Chua Chor Hoon, Head of Southeast Asia Research at DTZ.
“The very low mortgage rates now is another reason that motivates home purchasers. Many foreign investors are also attracted to buy Singapore properties, given the economic concerns in the US and Europe and home purchase curbs in their own countries, coupled with the strength of the Singapore dollar and strong fundamentals of Singapore.”
It was earlier reported that the euHabitat project at Jalan Eunos, which was previewed a few days before the festival started, is now almost 50 percent sold. Around 336 of its 748 units were sold in less than a month, said the report.
Terrasse, a 99-year leasehold project in Hougang Avenue 2, is now nearly 70 percent sold, with 13 more units snapped up in the first two weeks of August.
Dr Chua Yang Liang, Head of Research and Consultancy at Jones Lang LaSalle (JLL), said the strong demand could be the result of several factors.
“The low interest rate environment, lack of alternative investment instruments, overall a large residual demand for mass housing as a result of strong population growth over the past few years that was not met by an equivalent increase in housing stock,” said Chua.
“The pull back in housing demand during the hungry ghost phenomenon is probably more obvious at the overall transaction volume across the island rather than at a specific project level.”
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