Private Home Sales Up 52%

Source : TODAY, Aug 18, 2009

SALES of private homes hit a new high for the second straight month in July, surging about 52 per cent from June.

Low interest rates, relatively lower prices and a fear of missing the bottom are some reasons behind the strong sales. Although there were also signs of speculation, a significant portion of the sales was backed by real demand, said analysts.

According to the Urban Redevelopment Authority, 2,767 units were sold last month, compared to 1,825 in June. The total number of private homes sold in the first seven months of the year hit 10,017 units.

Property consulting firm Cushman and Wakefield director Donald Han said: "With another five more months to go, (sales could) potentially cross the 15,000 mark. It might go as high to 16,000 to 18,000; it will definitely be one of the records being set."

Out of the total number of units sold last month, more than half were in the suburban areas, about 27 per cent of the transactions were in the city fringe areas, while 18.6 per cent were in prime districts.

The five best selling developments last month were The Gale near Changi airport, Meadows@Peirce at Upper Thomson Road, Waterfront Key along Bedok Reservoir Road, Sophia Residences near Dhoby Ghaut and Parc Imperial at Pasir Panjang.

Analysts say July's sales numbers will be unmatched in August, due to the Hungry Ghost Month (Aug 20), which is a traditionally slow period for sales. Less than 1,400 units are expected to be sold then.