Quiet developer sales expected in August due to Lunar 7th month

The market rebounded in July, increasing 70.9 month-on-month.

As the seventh lunar month approaches next month, there will be a quiet developer sales in August as developers will hold back on launches, according to Huttons Asia.

Huttons said figures will revert to June’s sales volume whilst launch activity will continue in September.

Meanwhile, developer sales are predicted to be around 9,000 units and private home prices are seen to rise up to 8% in 2022.

For One Global Group, they expect sales at locations with attractive pricing to get gradual pick-up in demand. But any immediate increase in borrowing costs could make home buyers cautious about accepting new loan agreements.

It is seen that with these factors along with new launches, overall new home sales will be from 8,000 to 10,000 units compared to more than 13,000 units sold in 2021.

OrangeTee, on the other hand, sees that the property market will still suffer from headwinds from global inflation, interest rate hikes and supply chain woes.

July figures

The Urban Redevelopment Authority’s sales data showed that 834 private homes, excluding executive condominiums (ECs), were sold in July. This is a 70.9% increase compared to the previous month. 

With ECs, sales rose 70.6% month-on-month. On a yearly basis, new sales excluding ECs declined by 47.9 percent from 1,602 transactions in July 2021.

This is a reversal from June 2022 figures wherein sales for new private homes declined 64% month-on-month.