RESIDENTIAL PROPERTY | Staff Reporter, Singapore

Expect homebuyers to be more selective and cautious: Colliers

This as they are said to be becoming increasingly price-sensitive amid strengthening prices.

Ms Chia Siew Chuin, Director of Research & Advisory at Colliers International said:

Buying demand is expected to remain strong in June on the back of healthy economic fundamentals and the continued low interest rate environment. However, with buyers becoming increasingly price-sensitive amid strengthening prices, they are expected to be more selective and cautious in their property purchases going forward, with some likely to prefer waiting for clearer direction on possible policy changes from the Government. In addition, some potential buyers could have been sidelined from the market due to the mid-year school holidays.

With overall demand still healthy, developers – especially those with weaker holding power – are likely to continue to roll out their projects in June 2011. However, some developers may prefer to test the market and launch in smaller batches in view of the mixed sentiments in the market.

In the light of the above, developers’ launch volume in June is expected to stay at above the 1,000-unit level, possibly exceeding May’s level. Sales are also expected to stay at above the 1,000-unit mark in June, but are unlikely to surpass May’s level.

In terms of outlook for 2011, she said, “With developers’ sales volume standing at 6,975 units for the first five months of 2011, the entire year’s sales tally could now hover in the region of 14,000 units.”

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