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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.


4 Responses to “Sales of private homes down by 31.6% in May”

  1. abang said

    Use your backside think. If state media or analyst or govt say: ya, property going to crash. Next moment what? People will panic and won’t buy anymore and those “presume rich” people will quickly let go their other property.

  2. Ron said

    When the music stops….. many will be left holding expensive properties without rental nor buyers.

    The cost of properties is now beyond the ability of many buyers unless they take 30 years or more. What if they lose their jobs, suffer major business setbacks or have a serious illness? Not difficult to do some simple sums on affordability, based on CPF and whatever meagre after-tax cash savings and setting aside the cost of living.

    If real estate companies think that China buyers will be saviours, good luck to that logic too. Real estate has crashed in China already. And Spore has introduced dis-incentives for foreigners.

    Are Malaysians, Indonesians and other foreigners buying? The world economy is in bad shape. Spore’s economy is not doing that well too. And we hope bank interest will not rise in the next few years.

  3. weak justice said

    GOOD!!! CRASH!!!! time for the elitists attitude to wake the hell up!!!

  4. P Koh said

    What goes up must come down. The climb has been for too long a period and while the property markets in China amd HongKong have taken serious tumbles, it is surprising to say the least that the Singapore market remained vibrant. The time
    is now coming as can be seen by the numerous newly completed projects coming on stream this year and next year. The marketing of many projects have now also targetted phone users and I receive many invitations to view properties almost
    every day. What does all this mean.? I am sure those foreigners who came early a couple of years ago to purchase will take
    this golden opportunity to liquidate and return to their home land to enjoy the harvests at Singaporeans’ expense. The financial crisis in Europe is not going to go away and they are still trying to figure out how to solve the Greece, Spain and Italy’s financial woes and things are not looking rosy either. When the selling starts (not just the tampering of buying), we shall see the market plummet and I sure loathe to see and hear those who got into the property market now getting their fingers severly burnt.

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