4,476 homes were sold in the first six months of 2014, less than half the sales recorded in the first half of 2013, according to CBRE.
“The drop in sales in the first half of the year is mainly the result of the fall in the number of launches. The number of units launched in the first half of 2014 totalled 4,807, which is about half of the 9,941 units launched in the first half of 2013,” said Joseph Tan, Executive Director at Residential, CBRE.
While the units sold in the H1 2014 is lower, it still reflects a strong take-up rate of 93 per cent, he added.
According to Colliers International, launch and sales volumes declined year-on-year respectively by 76.4 percent and 73.3 percent from the 1,768 units launched and 1,806 units sold in June 2013, before the Total Debt Servicing Ratio (TDSR) was announced.
“The sales tally of 482 units in June 2014 is the lowest registered for the month of June since primary market sales data was made available from June 2007,” said Chia Siew Chuin, Director of Research & Advisory at Colliers International.
She expects launch activity to pick up slightly as the traditional lull period is over,
However, with fewer affordably-priced mass-market projects in the pipeline, buying volume is not expected to improve extensively. Colliers International predicts primary market sales volume remain to the region of 400 to 700 units in July.
For the second half 2014, location and the pricing will be the most important factors in determining home sales volumes. CBRE expects buyers to remain selective and take a longer time to make their purchase.
Tan said, “Based on the projects that will be coming on-stream, we anticipate that underlying demand, coupled with competitive pricing, should ring in total new sales of between 8,000-9000 units for the whole of 2014.”