Is July’s year-high record of home sales as good as it’s going to get in 2016?

It’s still well below 2015’s 1,655 units sold.

Singapore’s private residential property market is seeing a turnaround, and it’s gaining traction fast.

According to CBRE Research, July 2016’s year-high sales signal sustained momentum for the stock of unsold units from ongoing projects.

"In fact, the number of unsold units is at an all-time low at 21,489 units as at end June. At this level, with the current underlying demand of around 7,000 units, the market should have sufficient stock for the next three years," stated Desmond Sim, Head, CBRE Research, Singapore and South East Asia.

Sim said that the cut-back in fresh supply has helped clear the inventory as buyers continue to commit to the purchase of a home.

JLL concurred, and stated that the private home market is showing signs of life after its mid-year lull in June.

"The 1,091 private homes sold in July which is the highest monthly sales in 2016 suggests that the market outlook which turned positive in the earlier part of the year seems to be carrying through past mid-year," asserted Ong Teck Hui, National Director of Research & Consultancy at JLL.

"It is well below the 1,655 units sold in the same month last year, but it is not indicative of a slowing market because of the extraordinary quantum launched in High Park Residences that resulted in the large number of units sold then," Ong added.

Looking forward, Sim noted that it would be no surprise if some reserve sites are triggered before end-2016 should the current momentum continue.