Chart of the day: Are private developers’ sales finally due for a rebound?

Sales volumes are 1.4% higher year-on-year.

Persistent headwinds in the private residential market has held primary home sales to anemic numbers for so long, but data from May 2016 suggest that sales are finally showing some signs of life.

According to a report by Orangetee Research, May 2016 registered the highest monthly developer sales since July 2015.

37% of sales were contributed by sales from new launches, while sales from existing launches have picked up, Orangetee Research added.

“YTD sales volumes are 1.4% higher compared to the same corresponding time period and units are moving at a promising rate at many existing launches,” the report noted.

However, the report added that developers should not rest on their laurels, as buyers are still very price and quantum sensitive, given that cooling measures have remained intact.

“The market is still driven by projects that offer an attractive and unique value proposition,” the report added.