No more holding back on new private home sales

Rally imminent as newly confident buyers splurge this September, says Colliers.

Buying conditions are developing positively for new private homes, with support policies and product launches set to surge.

"Going forward, barring any major economic crisis, the demand for new private homes is likely to continue to remain positive as conditions remain conducive," said Colliers International in its comments after the release of August 2012 URA residential statistics.

"For the month of September, total new sales is likely to hover around 1,600 – 1,700 units. This is considering some of the continued effect of the Hungry Ghost month which ended on 15 September as well as the potential improvement on the back of major new project launches lined up in the second half of the month – such as the 752-unit eCO and the 920-unit Riversails," Colliers said.

"The recent announcement of the QE3 by the United States Federal Reserve, which will keep interest rates low till 2015 and likely result in funds flowing into the Republic, is expected to further boost market confidence and support purchases," it added.

"Sales figures for the last three months of the year are expected to continue at about 1,500 to 1,900 units per month, except for the month of December, when developers may hold their new launches during school holidays as many will be away. Given that developers had already sold 15,621 units in the first eight months of the year, developers’ sale for the whole of 2012 is expected to reach around 21,000 – 23,000 units," it said further.

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