OrangeTee & Tie said the decline in volumes was a recurring seasonal pattern observed over the previous years.
Transaction volumes for non-landed private resale homes dropped for the second consecutive month by 1.5 percent to 743 units in September from 754 units in August, showed SRX Price Index.
Christine Sun, head of research and consultancy at OrangeTee & Tie, said the decline in volumes was a recurring seasonal pattern observed over the last years when sales transactions fell in September but increased in October.
“Buyers will usually return to the market after the seventh lunar month which ends in August but it takes time for the sales to be converted. The sales transactions may only be reflected about two months later,” she explained.
On an annual basis, however, transaction volumes rose 8.5 percent from September 2018 and are 5.1 percent higher than the five-year average.
“This is despite a 0.2 percent month-on-month and 0.8 percent year-on-year price increase and against a backdrop of continued global economic uncertainty and a growing supply of new homes being released.”
She noted that transactions for non-landed private resale homes have been on the uptrend since the third quarter of 2018, after the government introduced cooling measures in July last year.
Based on advanced estimates using SRX data, the total private resale home volume may exceed 2,350 units for the third quarter of 2019 and surpass the total resale transactions registered in the second quarter.
“However, Q3’s resale volume is still lower than the number sold in Q1 2018 and Q2 2018 before the cooling measures were implemented,” she said.
A total of 3,742 units were sold in Q1 2018 and 4,302 units in Q2 2018.
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Victor Kang, Digital Content Specialist at PropertyGuru, edited this story. To contact him about this or other stories, email victorkang@propertyguru.com.sg
