Home sales plunged record-low in October 2022: analyst

Only 312 units were sold whilst 102 units were launched.

Home sales fell to 312 units in October 2022, the lowest monthly transactions since April 2020 which reported 277 units, Huttons Asia said in its report.

It slumped by 68.3% month-on-month and 65.8% on a yearly basis.

According to Huttons, the low sales stemmed from low unsold stock and lack of major launches.

“The estimated launched and unsold units stand at 2,031 as of end-Oct 2022. This limited the choices for buyers and capped the monthly sales. Buyers are not so concerned over the high interest rates as the drawdown on loan for new homes is on a progressive basis,” the property expert said.

For Leonard Tay, Knight Frank’s head of research, homebuyers are hungry for new products and in October 2022, the major launch was Copen Grand.

“ This is the first project at the newly developing estate of Tengah and comprised the majority with 59.3% of all developer sales in October,” he said.

Outlook for property market

The property market seems backed by demand growth, strong household balance sheets and tight labour market, said Edmund Tie consulting research head Lam Chern Woon.

But layoffs may contribute to the economic situation and may dampen market sentiment.

“Looking ahead, we expect primary sales for 2022 to be recorded in the territory of around 8,000 to 8,500 units, a marked decline from 2021’s 13,027 units, on the back of tighter financing conditions, ongoing macroeconomic headwinds and rising interest rates,” said Lam.

Post-cooling measures, the overall price growth may be positive but at a moderate pace.

“We expect about 9% price growth for the whole of this year, compared with 10.6% last year,” Lam added.