Don’t be misled: The reported 57.4% growth in private residential units launched in July is a bluff

Firstly, out of the 2,541 units launched, 1,106 units were executive condominiums. The 1,435 units of private residential units launched in July actually reflected a slowdown in launches of (pure) private residential projects. Comparing developer launch activity in July with June, we should instead look at the 1,435 units of pure private residential units released in July, against 1,614 units of pure private residential units launched in June – as executive condominiums cater to a specific (separate) group of buyers, who felt private residential properties are too costly but are not eligible to buy private homes.

Also, the economic conditions were fairly stable in July with much innate homebuyers’ interest although buyers are generally cautious as private residential prices have run up. The economy remained stable and genuine owner occupier buyers’ interest remained cautiously optimistic. It was thus a suitable time to continually release projects before any necessary property cooling measures could be rolled out, which are likely to restrict buying and re­selling flexibility. Also, there were various projects which were ready for launch and July will be a chance to showcase them before the seventh month (in August) which can potentially slow homebuying interest.

The moderated developer sales in June was partly due to home sales where many families have travelled away for vacations and have fewer time to spend on househunting and visiting property launches. July will be a good time to release projects ready for launch notwithstanding buyer sentiments were overall cautious.