Desmond Sim, Head, CBRE Research, Singapore and South East Asia:
“The URA’s private residential sales volume for the first six months of 2016 was recorded at 3,763 units. This is approximately 10 per cent higher than the 3,427 units sold in H1 2015 a year ago, despite the fact that there have been fewer new launches. (There were no new major launches in the month of June 2016)
In the sustained absence of new launches, buyers have been turning to existing projects. The ratio of the sales of new to previously launched projects seems to have swung in favour of projects that were put on the market earlier. In H1 2016, 73 per cent of the stock sold were from projects that were launched more than 6 months ago. This is a continued positive sign for the market as the unsold stock inventory is slowly but steadily being reduced. The creative pricing of projects by developers was the key to successful sales.
The market has gradually transitioned into a steady phase, with few fluctuations in sales volume between quarters, pointing to the possibility that a bottoming-out is imminent. These are the signs that the market may be approaching its trough.”
Disclaimer:
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