The figures are starting to threaten the industry. With just 192 new private homes sold last month, it has been predicted that this year’s total sales can fall to levels that has never happened since 1990.
CBRE Research reveals a total sale of about 4,300 units, a painful drop from last year’s 14,811 units.
Given that this situation endures this year, the industry will suffer the lowest figures in 18 years when only 2,526 units were sold in 1990. Since the economy appears to have a constant decline, “sluggish sales momentum” are still expected to happen.
There was an increase of sales in November, which ignited a slight optimism among private residential industry. However, Director of research and consultancy Nicholas Mak said, “General homebuying sentiments remained weak and possibilities for a recovery remained remote.”
Various projects pushed through, like last month’s top seller, Rosewood Suites in Woodlands, Newton Edge, RV Suites and Evania.
Mister Li perceives price as a decision point for buyer. He says, “Price remains a critical factor to move sales, as seen by the good response.”
While suburban homes took part in the 53 percent of the sales of developers last month, Ms Tay Huey Ying, advisory at Colliers International and director for research, says that there is a market of buyers for these suburban homes.
Mister Mak reminds the industry, “Buyers will remain very cautious, even if some re-pricing sets in.”