July’s developer sales figures continue to indicate levels of market recovery in terms of sales volume, and come off the back of a marginal 0.1% q-o-q price decline in the property price index in Q2 2017. New private home sales in the first seven months of this year (7,147 units) have already reached the 7,000 to 8,000 range of average annual new home sales in 2014 to 2016. That range had been identified as underlying demand and we are now seeing the possible swing of pent-up demand coming into the market. Likely, potential buyers have come to terms with the prevailing cooling measures, and recent information that a possible turn of the market in terms of pricing is here may have pushed pen to paper. It should be noted as well that this possible upturn is likely to be driven by land pricing, rather than supply and demand imbalance.
At the same time, the executive condominium market has also seen strong take-up. This is not surprising as the premium between private residential and EC prices – the latter capped by a glass ceiling – has widened in light of recent land sales.
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