Sales of new non-landed homes decline 68% in June, compared to May: URA
The sales of new non-landed private homes didn't continue its good run in June as sales slumped by nearly 68 per cent.
In latest figures from the Urban Redevelopment Authority or URA, there were only 482 units sold compared to 1,488 units in May.
The new home sales figures in May were the highest in almost a year, but the numbers for June were the lowest in three months.
While analysts such as SLP International's Nicholas Mak put it to seasonal factors such as the June school holidays and the World Cup keeping people away from show flats, Century 21's Ku Swee Yong says declining prices of HDB resale flats could have lured interest from HDB upgraders away from the private market.
He says these buyers worry that they won't be able to get premium prices for their existing flat.
Mr Mak expects sales in the third quarter to pick up as developers launch more projects.
Mr Ku agrees.
"There would be a couple of high profile launches that may sell very well. Marina One and High-Line in Tiong Bahru which many investors are holding back their cheques to wait and watch the prices of these two launches. Because of the location, and the developers brand name."
Marina One is developed by M+S, a joint venture between Singapore's Temasek and Malaysia's Khazanah while High-Line Residences is developed by Keppel Land and is just a stone's throw from Tiong Bahru MRT station.
At the same time, developers are also cutting prices of certain projects to sell more units.
The Panorama in Ang Mo Kio is one such project.
Mr Mak says prices for units there have dropped by an average of four per cent since the start of the year.
This could be a reason why The Panorama accounted for nearly 10 per cent of June's total figures.
Mr Mak says price cuts could also have a drawback.
"Price cuts can also lead to further expectations of future price cuts and buyers may not enter the market even after prices have been reduced. So the strategy of reducing prices to increase sales has to be done in a measured manner."
Century 21's Mr Ku says some projects which have slashed prices by up to 10 per cent have had withdrawals of 10 to 20 buyers.
This indicates to him that the buyers are willing to forfeit their initial option fee and still benefit from cheaper discounted units later.
-By Gwendolyn Goh
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