Sim, Head, CBRE Research, Singapore and South East Asia.
momentum seems to be carrying on.
appear to be accepting the fact that the trough of the market is here in terms
of pricing. New home sale numbers in May were relatively high at 1,024 units
despite no major launches in the month.
At the same
time, there were also no significant changes in pricing for the top-selling projects.
major launches in the month, a positive spin would be that a wider selection of
previously launched projects seems to be chalking up steady sales. A probable
factor could be that further interest rate pressures may push pen to paper.
Additionally, the recent performance of land prices may stoke beliefs that
property prices could rise in the near future.
At the same
time, we are seeing a pick-up in interest for projects in the Rest of Central
Region. Buyers could be perceiving more value in projects in this segment.
Indeed, a comparison of net take up rates for projects in the RCR and OCR show
a recent rise for the RCR. That said, RCR is still a geographical spread and
some of the better-selling projects could be closer to the OCR fringe.
pipeline for new project launches remains limited, should current sales
momentum continue, we would not be surprised to see launches being brought
forward. As a result, sales volume for 2017 may surpass initial expectations.
Neither CBRE nor its affiliated companies make any warranties or claims on the implied accuracy of the information contained herein.
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