Private resale deals to surge while new launches fizzle out

Expect over 6,000 transactions this year.

If you are a homeowner who had been waiting in the sidelines before selling your private condominiums, then this year might finally be the perfect time to enter the secondary property market.

Analysts note that resale transactions are likely to surge this year as developers hold back on new launches.

According to a report by PropertyGuru, some developers might be unwilling to launch new offerings given the current market climate. This means that bulk of transactions this year will come from resale deals. 

The report noted that with sales of new private homes set to remain status quo, it is anticipated that developers will respond accordingly to demand and release only one or two major launches, with an average of 500 – 1200 units in total, monthly.

“As can be seen in 2015, transaction volumes and prices have stabilised so we are expecting that activity will pick up again in 2016. However, it is in the resale market that will see most of the action taking place, with well above 6,000 units sold,” said Jack Chua, CEO of ERA Realty Network.

“On the other hand for new launches, I do not feel that volumes will increase a lot - number of sales is forecasted to be in the same region as that of 2015,” he added