June sales dropped by half from what was recorded in May. June is usually a slow month while May had recorded a ten-month high in sales.
According to Urban Redevelopment Authority figures, only 536 units were sold last month excluding ECs, in comparison to the 1058 units sold in May, a 49% decline.
Analysts attributed the decline to the lack of new launches and the effect of school holidays in June.
However, the figures were more promising than June last year’s sales of 375 homes, an increase of 43%.
Eugene Lim, ERA Realty Network noted that the figures indicated that there is a return to the market by more buyers.
The recent years has seen low demand for new homes since the government imposed cooling measures in June 2013. The measures have also led to the reduced private home prices.
The month also recorded few new launches with only 234 units launched in comparison to 1,345 units launched in the month of May.
The majority of the sales were in the suburbs with 324 or 60% of the units changing hands. The city fringe followed with a sale of 166 units while the core central region sold 46 units.
Since there were few major launches, buyers bought units from the existing projects. The three best sellers were Kingsford Waterbay in Upper Serangoon, which sold 34 units at $1,185 psf, The Glades in Bedok Rise with 32 units at $ 1,402 psf and Kingsford Hillview Peak in Hillview at $1,315 psf.
The June sales for ECs dropped by 30.5% to 232 units from the 334 units sold in May. There were no new Executive Condominium launches. The top seller was Bellewaters in Anchorvale Crescent with 43 units sold at $804 psf.
According to URA data, the first half of 2016 had 3,814 new private homes sold excluding the ECs, a 7% increase from the 3,564 sold in a similar period last year.
CBRE is of the opinion that the market is headed to a trough. “The market has transitioned to a steady phase gradually with the sales between quarters having few fluctuations, a sign of an imminent bottoming-out,” said Desmond Sim, CBRE Research head.
Analysts have observed that projects that are coming up which include Gramercy Park in Grange Road, Lake Grande in Jurong, Forest Woods in Lorong Lew Lian and Parc Riviera in West Coast Vale could boost sales as developers plan their launches ahead of the Chinese Hungry Ghost Festival in August.