In the midst of a bad economic outlook, new sales of homes continued up for a third straight month. In reality, developers last month sold 1,080 homes, up 8.2% from June.
Over the circuit breaker era in April, this is up from a near six-year low, but sales were down 8.4 per cent from 1,179 a year earlier.
In July, 869 private homes were introduced, up almost 46% from 597 in June, but down 4.6% from 911 a year earlier.
The analysts argue that the bulk of the units sold resulted in prior sales, comprising 68 % of the total profits of July.
The figures, which the Urban Redevelopment Authority (URA) released yesterday, excluded Executive Condominium (EC) homes, a public-private housing combination. The URA data showed that 1,142 new non-landed houses, including EC units, were taken up last month, almost 11% from June, but down from 1,557 homes a year earlier by approximately 27%.
Wong Siew Ying, PropNex Research Head, pointed out that while the reasonably high turnover in recent months might be counter to the gloomy economic forecasts, the ongoing downturn in all sectors is not felt equally.
“Some businesses, such as financial services and telecoms, have been better able to rely on their work opportunities or have created substantial savings, and others who are more secure in their opportunities may see this as an appropriate market moment.”
However, the lack of new releases last month suggests restraint by some developers. As the showflats reopened on 19 June, a period which usually sees a quieter business tomorrow’s beginning of the Hungry Ghost month, they were not swift to join new businesses.
Developers require more time to rework their pricing strategies, in particular for bigger ventures, and stable management moves.
Factors such as the intensity of the recession and the management of the pandemic, he said, could impact product releases and sales for the remainder of the year. Penrose in Sims Drive and The Landmark on Chin Swee Road will be used in upcoming releases.
Projects in the suburban submarket (excluding the Central Region) with 548 sales led the take-up last Month, followed by 419 units sold in or outside the capital, and 113 in the prime regions, or central center.