Chart of the Day: Volatility dampens property market sentiment

Total primary sales dropped 23% MoM to 2,057 units in May.

Savills Research reported:

The ongoing volatility in the global environment has started to dampen property market sentiment slightly in the first two months of Q2. Total primary sales (including executive condominiums [ECs]) fell 12% month-on-month (MoM) to 2,670 units in April and a further 23% MoM to 2,057 units in May. However, on a YoY basis, demand leapt 61% to 12,978 units in the first five months of this year.

The softening in demand could have been caused by lesser launches of large projects (>100 units) in recent months. In Q2/2012, although there were 14 major projects launched, only one, Eight Riversuites, was a mega project with 862 units. Midsized developments launched include 1 Canberra (665 units), River Isles (610 units), Flo Residence (530 units) and Sky Habitat (509 units). These launches saw a relatively healthy take-up with most projects snagging more than 100 sales within the first month of their launch.