Buying activity is likely to quieten down in December as it is usually a traditionally lull period for property sales in Singapore, OrangeTee Research & Consultancy said in a report.
Buyers tend to hold back purchase decisions and go on holidays as the year draws to an end. Due to the decreased demand, analysts say most developers see no point in launching new projects during this period. Hence, they are likely to hold back new launches and strategise for 2015.
As such, the total number of new private homes sold for the whole 2014 is likely to be around 7,500 to 7,800 units, compared to the 14,948 new homes sold in 2013.
Desmond Sim, Head of CBRE Research in South East Asia said, “Among the various cooling measures introduced by the government, the Total Debt Servicing Ratio (TDSR) framework has been most impactful, slashing the sales volume by half.” He added home prices have also declined by around three percent in the first nine months of 2014.
“Developers have sold 7,137 private residential units in the first 11 months of 2014 and the year could end with around 7,500 units sold, about half the developer sales volume in 2013,” Ong Teck Hui, National Director of Research and Consultancy at JLL, added.
Meanwhile, developers’ sales volume in December is expected to come in at under 400 units to close 2014, Colliers International’s Director of Research & Advisory Chia Siew Chuin predicted.