Property buying sentiment still extremely lacklustre despite April sales surge

Buyers will remain in the sidelines.

The surge in new home sales in April does not translate to a recovery in property buying sentiment.

According to Colliers, the improvement was driven by only two projects and does not reflect a firm improvement in market sentiment.

"The pick-up in sales volumes mainly stemmed from the sales of Bontanique at Bartley and North Park Residences, for which buyers, who have been waiting on the sidelines for some time, decided to take the plunge – attracted by the projects’ attributes and reasonable pricing," said Chia Siew Chuin, Director of Research & Advisory of Colliers International.

"Going forward, homebuyers are expected to keep on their toes, amid multiple headwinds that have created a mood of tentative sentiment, committing only if they perceive a decent value proposition. Consequently, primary market sales volume is expected to moderate to between 400-700 units in May, as launches slow down," she said.