New home sales expected to crash this month after breakneck growth in April

Blame it on a dearth of new launches.

New home sales are expected to plunge in May after a stunning 83.4% month-on-month surge in April.

Analysts note that after moving 1,124 units in April, developers’ sales could fall back to about 300-400 due to a dearth of new launches this month.

“April’s sales volume is the highest monthly tally since May last year, a function of quality supply. Nevertheless, CBRE would like to reiterate that if no major launches are recorded in May, we might see numbers drop to previous months’ levels of about 300 – 400,” said Desmond Sim, Head, CBRE Research, Singapore and South East Asia.

A report by Wong Xian Yang of OrangeTee Research noted that there is a strong correlation between the number of launches and sales in any particular month.

“Developer’s sales figures are expected to moderate in May, due to the dearth of launches in May so far. A higher the number of launches increases the probability of higher sale figures for that particular month,” the report stated.