New private home sales dropped by 56.6% this August after a solid performance high last July.
A total of 473 units were sold in August sales, a significant decrease compared to the 1,091 homes that were moved in July. It is also 7.8% less than the 513 house sales which were made in the same month last year.
Mohammed Ismail Gafoor of PropNex Realty noted that buyers remain on the sidelines at this time due to ongoing (cooling) measures and the anticipation of future price declines.
Market analysts also linked the slow sales of August to weak market activity experienced during the Hungry Ghost Festival, and the lack of major new launches in the housing sector.
Only 590 units were put on the market in August versus the 624 in July.
The lack of new executive condominium (EC) units on the market also affected total home sales for August, with only 332 new EC units sold.
This pulled down total home sales into 805 units from the 979 that were sold in the same month last year.
Despite this, ECs continue to be popular with buyers. The top three selling projects for August were all ECs: Treasure Crest In Anchorvale Crescent, Sol Acres in Choa Chu Kang, and Bellewoods in Woodlands.
With fewer projects being launched due to the tapering of the Government Land Sales program, existing projects are also seeing an increase in sales this year. Price levels are expected to hold in locations where existing unsold supplies remain thin, said Wong Xian Yang of the OrangeTee research, with demand gravitating towards existing launches. Consultancy JLL reported an increase in units being released by launched projects such as The Crest, The Glades and Kingsford Waterbay, and The Trilinq.
This reflects confidence in the part of the developers, who probably anticipate that sales will rebound again in the coming months, JLL said.
Around 7,500 to 8,000 units are expected to come in the market for the full year. New EC sales are expected to hit 3,500 to 4,000 units.
As of August, 5,378 units excluding ECs have been sold.