RCR homes dominate deals as private home sales inch up in July

484 units were sold last month.

Private developer sales remained lacklustre in July. Sales inched up very slightly with 484 units sold last month compared to 482 units in June.

According to PropNex Realty, the Rest of Central Region (RCR) was the most active in July, accounting for 46.1 per cent of new private home sales, while Outside Core Region (OCR) and Core Central Region (CCR) accounted for 35.7 per cent and 18 per cent respectively.

“May’s exuberant private home market was largely due to two huge projects (Coco Palms and Commonwealth Towers) which accounted for over half of the month's launches and sales respectively. For the months of June and July, however, we see more moderated sales but we could see healthy monthly sales in the future if more projects are priced realistically at levels that would draw in buyers,” commented Mr Mohamed Ismail, CEO of PropNex Realty

Here’s more from PropNex:

Private home sales remained moderated compared to June 2014 due to the market sentiments and the availability of new launches in July. As a result, developer sales remain subdued in July with a total of 434 units launched and 484 units sold (excluding ECs).

The various Government measures have effectively curtailed demand from all groups of homebuyers. Not only have selected groups of buyers been side-lined by financing rules under the TDSR, the home-buying budgets of eligible buyers have also been trimmed.

Additionally, demand from upgraders from the Housing and Development Board (HDB) market has also been affected by the softening resale prices of HDB flats which are expected to continue on a downtrend.

CEO of PropNex, Mr Mohd Ismail concluded, “Private New Home Sales volume for the whole of 2014 is likely to be in the range of be 9,000 to 10,000 units in all. This is about 35% shy of the 15,000 units sold in 2013 and about 55% lower than 22,688 units sold in 2012.”