Singapore New Private Homes Sales – Why on Sluggish Trend?
Figures do not lie, the statistics are there and glaring too for all keen observers of the trend in sales in the housing sector over the past couple of months. What is responsible for this? Is it the global economic recession? Can it be traced to loss of interest from the buyers?
Decline in Sales
The above questions are puzzles that demand a clear cut answer when we are discussing this unexpected turn of events. Industry observers has given the reason for this decline in sales, it is simply the launches in February that were very few and far between.
Going into statistical archives, 320 Singapore Condo units were sold in December 2014 which was considered low then; but last month’s tally has rubbished that record. These are troubling times since the New Launch condo sales are declining rapidly.
Why is this trend allowed to continue unchecked? Is it because of the fact that the housing sector has lost its relevance? Far from that line of guesses! This action is deliberate. How you may want to know?
This drastic drop in sales of new homes is a deliberate ploy from developers if we are to go by what happened in the first two months of this year. It is a cautious approach on their part.
First they are in business to make gains and not to incur debt no matter how small. The stock market is not favorable then- it was very volatile and thereby not good for business. The Chinese also observe every year festivities that usher in the New Year.
Those are the tactical indices responsible for the glaring decline in the condo for sale in the property market. The Volume of sales for the first quarter is projected to be in the region of 1000-1200 housing units a short fall of 10-15 percent over that of last year.
In any bad situation, there will always be a silver lining no matter how thin it may be. The drop in the volume of sales of the Singapore condo units has its blessings- the sales ratio in comparison to the volume brought out for launch.
Everything rests on the volume of sales. If you put up a thousand units and make a sale of 200; compared to the one that puts up 500 units for sale and makes a sale of 200; the latter is better in performance index over the former. This decline in the sales Condo has gained in this aspect of actual sales.
The people are not short of cash. They have the cash and are willing to buy. But one thing, when the launches come live, they must be priced correctly or else, the units are bond to remain as it is currently. That is the way forward in this New Launch condo. May be this is the right time to check out some key players such as Kingsford waterbay, Sturdee Residences and Trilive.