Sales of private homes down by 31.6% in May
Posted by temasektimes on June 16, 2012
In a possible sign that the property market is making a turn down south, sales of new private homes, excluding executive condominiums (ECs), declined 31.6 per cent in May to 1,702 units.
However, the state media is quick to add a positive spin to it by quoting ‘analysts’ saying that it is ‘too early’ to confirm the market is in a downtrend.
Speaking to queries from the media, Eugene Lim, key executive officer at ERA, said:
“We cannot interpret that (May’s) dip in sales will mean that the market is on the decline. I think the market is taking a breather because we had three to four months of blistering pace in new home sales.”
Another ‘analyst’ from Ascendant Assets even predicted that prices will continue to go up:
“Right now, the banking system is holding about S$150 billion worth of savings and deposits. In comparison, during the Asian Financial Crisis, the banking system only had about S$50 billion. So because of this huge liquidity, we do not expect prices to come down. What we do expect is for prices to stabilise and in fact, creep up. We would say creep up by 3-5 per cent.”
The prices of Singapore properties have almost doubled in the last ten years fueled by the growing demand from the relentless influx of foreigners.