Desmond Sim, Head of Research, Singapore & Southeast Asia:
August new home sales of 616 units points to continued momentum of price quantum-led buying, post the July cooling measures.
This momentum has exorcised any fears behind the Hungry Ghost month, as sales take-up outpaced the number of units launched (534 units). The genuine fear could be that of missing out on value deals, on the back of possible rising home prices due to escalating land costs in future launches.
Although a function of units launched, this monthly sales volume is still higher than sales in January (527 units) and February (384 units) this year before the measures were introduced. CBRE would like to caution that the high volume of potential new launches injected into the market over the next 12 – 24 months might outpace take-up, resulting in higher unsold inventory, even if this momentum continues.
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