Here's why the home buying frenzy died off in April

Will this trend continue?

According to Knight Frank, against the existing backdrop of a supply-induced demand trend in the private residential market, developer sales performance has been fluctuating over the last four months of this year. 

Following a record high sales volume in March 2013 with many project launches after the Chinese New Year period, the markedly lower sales volume last month indicates a general moderation of market sentiment from developers and homebuyers. 

Here's more from Knight Frank:

Developers are holding off new launches last month, as they typically stagger launches of attractive projects over a period of time. Similarly, the buying momentum usually follows in tandem with new launches and would need some time to fully absorb existing projects available for sale, before moving on to other launches.

With an anticipated high number of upcoming project launches, especially developments at plum Government Land Sale (GLS) sites, buyers could be holding back their buying decision for now until a more attractive project is launched.

The buying frenzy last seen in March 2013 appears to have cooled off last month, following the government’s reaffirmation of no new cooling measures for now given that housing prices are generally moving in the intended direction.