Private home sales have gone through a series of struggles during the past few years. However, they achieved the four year high during last month, which indicated signs of recovery. The adjustments to property cooling measures, which were introduced back in 2009, can be considered as the main reason behind the downfall of private home sales. It has taken several years to show some signs of recovery and with the obtained results, we will be able to keep our hopes high about the future.
During the last month, developers were able to sell 1780 new units. However, it is important to keep in mind that this figure has been calculated by excluding the executive condo units. The new units that were sold back in February were just 979. Therefore, you can clearly see that the sales have almost doubled. In other words, the sales have increased by 82%. The record breaking figures that we saw during the last month have been able to create an impact on the quarterly figures as well. During the first quarter of this year, a total of 3141 units have been sold. This is the best quarterly effect that we can see after the second quarter of 2013.
The official records about sales information was released by the Urban Redevelopment Authority a couple of days back. By taking a look at the records at a glance, we can clearly see that the market is recovering. As per the trend, we can believe that the private residential property sector would boost during the upcoming quarter as well. The demand is increasing regularly and the supply needs to be provided in order to cater it. It seems like the demand would not reduce in the near future and we cannot expect any decline in the market as a result of it.
As per Christine Li, who is the research director at Cushman & Wakefield, potential home buyers show a tendency to spend their money in order to purchase private new launch condos or resale condos. This has driven the residential market in Singapore one step ahead. With this step, the market has become closer to a well-deserved turning point.
What was the main reason behind the recovery of private home sales in Singapore? The government recently introduced some changes to the property cooling measures. In fact, the cooling measures were made easy by the government. Moreover, potential home buyers delivered optimism into the market, which contributed a lot towards the recovery. The seller’s stamp duty charges were reduced by the government during last month and holding period was reduced to three years. These steps impressed people who are looking forward to invest their money on private home sales. These buyers are now more prepared in order to spend their money and purchase homes. Moreover, procure land has become even more urgent for the developers because the unsolved inventory, which belonged to their projects have started clearing. Therefore, we will be able to experience better signs of recovery during the upcoming quarters.
There might be limited supply in the new condos that have obtained TOP, however we still have direct developer units for newly launch developments and upcoming new launches