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Private home sales rebound, but shadow of cooling measures remains

SINGAPORE — The private housing market regained some momentum last month as buyers snatched up units amid a larger number of new launches by developers, following a lull in August when home buyers held off buying and developers held back new offerings to avoid the Hungry Ghost Festival.

SINGAPORE — The private housing market regained some momentum last month as buyers snatched up units amid a larger number of new launches by developers, following a lull in August when home buyers held off buying and developers held back new offerings to avoid the Hungry Ghost Festival.

Analysts expect some seasonal uplift in sales before the year’s end, but cautioned that the market is still far from a full recovery as cooling measures continue to pressure the market.

Based on Urban Redevelopment Authority data, 648 units (excluding executive condominiums) were sold last month, a 48 per cent increase over the previous month’s revised 437 units. Including ECs, the number of units sold in September was 707.

The number of private homes released into the market last month was also higher at 514, up from August’s 399 units, which was the lowest since last December.

But the rebound does not necessarily signal a definite recovery: September’s sales are still 48 per cent down from the 1,237 units sold in the year-ago period, Reuters reported.

SLP International’s executive director for research and consultancy Nicholas Mak believes that the cooling measures will continue to dampen the market despite what he calls September’s “modest recovery”.

“September to November is usually a seasonal window for better sales, but I don’t think we’re looking at a sustained recovery. In fact, sales volume hasn’t crossed the previous 1,000-unit mark so far this year except in May,” Mr Mak said.

Against this backdrop, attractive pricing and location remain key drivers in helping developers move units, analysts said. PropNex chief executive Mohamed Ismail said: “This is why Seventy Saint Patrick’s was able to sell more than 100 units over a weekend — because it’s rightly priced, freehold and near an MRT station.”

UOL’s Seventy Saint Patrick’s — which is near the coming Marine Parade station — was one of the top two sellers last month, moving 110 of its 140 units launched. Keppel Land unit Harvestland also launched 160 units of its Highline Residences at Tiong Bahru and sold 142 units.

In the coming months, buyers will also have more options as more ECs are launched after their absence from the market since October last year. Last week, Lake Life — the first EC launched in the Jurong Lake District since 1997 — received more than 1,800 e-applications, a record high. Subsequent launches such as Bellewaters and Bellewoods are expected to be similarly sought after.

“There’s some overlapping between the EC and mass-market condo market, and with more selection available to buyers, developers will be watching the EC segment closely and price their launches accordingly,” ERA key executive officer Eugene Lim said.

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