Hungry ghost festival to haunt private home launches

Who will buy the 10,000 new homes in 2H12?

According to PropNex Realty, with more than 10,000 new private homes expected to enter the market in the second half of 2012, homebuyers are waiting for more choices in their preferred locations. The increasing prices of private property may also have resulted in some resistance from buyers. Mr Mohamed Ismail, CEO of PropNex Realty, cited the recent 2Q12 URA private property flash estimates whereby the Price Index of private property increased by 0.4% across Singapore.

“The volume of sales should continue to maintain at an average of 1,700 units per month for the next few months, depending on the kind of projects launched. New private homes in the OCR are going to be the driving force for the private property transactions in the next half of the year. There will be pressure for developers to price their projects reasonably as the increased supply will mean that buyers can afford to be more selective in their choices. With the hungry ghosts’ festival starting from 17 August 2012 and is traditionally a quieter month; the number of new launches may slow down in August and September,” predicted Mr Ismail.

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