Buyers flock back to old launches as new residential supply dwindles

But prices will not recover.

Buyers are becoming more interested in previously-launched residential projects, a report by OrangeTee Research revealed.

“With the continued taper of the GLS programme since 2H10, we may see a moderate increase in demand for existing new projects. With fewer projects expected in the launch pipeline, buyers’ choices are narrowed, and some demand might gravitate to existing launches,” OrangeTee said.

The report noted that sales at several existing projects such as The Panorama and Lakeville have improved in the past 3 months.

However, OrangeTee does not expect to see a recovery in prices as long as cooling measures remain in place.

“We do not see a recovery in prices, as the market remains restrained by cooling measures, loan curbs and uncertainties in the global economy. But, barring any serious deterioration in the global economy, developers should have more leverage to hold prices at their current levels, as current existing stock gets sold,” the report noted.