Sentiment in the property market in October continued to be weighed down by concerns over the US housing credit crunch.
According to the latest report from the Urban Redevelopment Authority (URA), more homes were launched and sold in October than in September. But there was a drastic drop of more than 50 percent in the number of units sold in the core central region.
About 629 new homes were launched in October – about 10 percent more than in the previous month.
The number of new homes sold also increased by about the same margin, with some 590 units changing hands.
However, most of these units were outside the core central region.
Only 135 homes within the core central region were sold - about half the number from the previous month.
Dr Chua Yang Liang, Head of Research & Consultancy, Jones Lang LaSalle, said: "It could be attributed to the sub-prime effect. At the same time because prices there are significant right now, compared to the other regions, there is a filter-out effect into the other non-prime areas."
In the mid market, 196 units were sold - more than double the previous month.
And units sold in the mass market went up by 72 percent at 259.
Property consultants said the current rise in prices seems to be at a healthy level.
Nicholas Mak, Director of Consultancy and Research, Knight Frank, said: "The median prices have increased by about 3.3 percent month on month, which is still quite an impressive growth and it can also be pointing towards a more sustainable rate of growth."
For the whole year, property consultants CBRE expect sales volume to hit 15,000 to 16,000 units.
This will be a sharp jump from the number of homes sold in 2006.
Some analysts said home prices are likely to increase by another 3 to 6 percent in the final quarter to achieve 27 to 30 percent for the whole year.
It is also expected that the withdrawal of the deferred payment scheme will probably have an effect on the property market in November and December. - CNA/so
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