,Singapore

Home sales feared to crash after exceptional volume surge in November

Sales will remain tepid until the Lunar New Year.

Private condominium sales surged by a staggering 79% on a year-on-year basis in November, driven by a newly-launched project in the Rest of Central Region (RCR). However, analysts warn that this sales surge is likely to be developers’ last hurrah for the year, as transactions are expected to die down as the holiday season roll in.

“The rise in demand could be short-lived given that historically, buying tends to increase in November, just before the slowdown in sales as the effect of the year end festivities such as Christmas and New Year sets in,” said Chua Yang Liang, Head of Research for Singapore and South East Asia at JLL.

However, Chua added that the spike in November sales indicates that buyers are finally moving back into the market, as the government had indicated time and again that it is still too early to ease cooling measures.

“Given the government’s continual emphasis that policy reversal is nowhere near, it would appear that buyers are moving back into the market although buyers are still very price sensitive, as the take up rate of the various projects suggest. We will have to watch the December number to ascertain if there the market is anywhere near its trough,” he said.

Meanwhile, PropNex CEO Ismail Gafoor said that sales surged as developers moved to capitalize on existing demand ahead of the annual school-holiday season. 

Ismail predicts that developers will remain focused on moving units or previously launched projects in December. At the same time, home seekers will remain selective, with a project’s location and price points as the main drivers of demand.

In addition, new private home sales are likely to remain muted until after Chinese New Year in 2016. 

“While the period before the year-end holidays presents a window of opportunity to secure more sales or launch new projects, developers are also concerned that too many projects being launched within a short time frame could dilute marketing efforts and sales take-up,” he said.  

Join Singapore Business Review community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

The partnerships aim to improve care delivery and patient outcomes.
The KoolLogix cooling system for data centres uses passive heat extraction and removal.
This is the first-of-its-kind collaboration between an index provider and an airport group.
The new initiative is targeted towards offering greater savings and flexibility.
Mapletree Logistics Trust was seen with the most growth.
Flexibility, specificity, and customer-centred approaches prove to be the edge in today’s enterprise application software companies.
The list is from Investigoal, which gave Singapore a score of 8. 
It won't push through with the acquisition of the majority of stake in a Vietnam property firm.
DBS Country Head Shee Tse Koon has apologised for the disruptions.
Only two in five Singaporean internet users are aware of NFTs.
October postings were up by 76% from February 2021.
Three of the four initiatives were spearheaded by Enterprise Singapore.
The agreement comprises two payments.
MTI cited four downside risks that will affect the economy's growth next year.