Property market shows signs of cooling as measures take effect

TODAY: Property market shows signs of cooling as measures take effect

by Jonathan Peeris | Oct 16

SINGAPORE - The Government's cooling measures appear to have tempered demand.

Data released on Friday by the Urban Redevelopment Authority (URA) showed that 911 private homes were sold last month - a 27-percent drop compared to August, when 1,259 units changed hands.

The September figure was the second-lowest monthly sales recorded this year. In June, when the World Cup was held, only 847 units were sold.

The decline in sales volume is expected to continue. Analysts estimate launches and sales in the fourth quarter to hover between 800 and 1,000 per month. Still, they expect sales for the whole of the year to exceed 14,000 units.

And sentiment will likely improve in the first three months of next year, analysts said.

Looking ahead, buyers would be watching interest rates closely, said Dr Chua Yang Liang, Jones Lang LaSalle's Head of Research for South-east Asia.

Said Dr Chua: "As total returns compress, interest rates are expected to play a bigger role in influencing buyers' decisions. The impact of state intervention on home demand and prices may thus be cushioned in light of today's falling interest rates."

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