'Significant recovery' in residential property market, says analyst

This article is more than 12 months old

Analysts believe the residential property market is in the pink of health after a substantial jump in new home sales.

Developers sold 820 new homes last month, a 53 per cent surge from June last year, when 536 new homes were bought.

The June figure was a 21 per cent decline from the 1,039 units sold in May, but analysts said June, the school holiday month, is usually a lull period, making year-on-year comparisons a more accurate take.

Still, after three straight months of sales above 1,000 units, June was the first month to see transactions fall below 1,000. However, developers launched just 159 homes - excluding executive condos - in June, roughly half the 370 homes launched in May.

Mr Ong Teck Hui, JLL national director of research and consultancy, said the sale of 3,426 units in the second quarter is the strongest quarter since the second quarter of 2013, before the total debt servicing ratio framework was imposed.

He said there was a "significant recovery" in sales volumes.

As at mid-year, 6,388 units have been sold, almost 74 per cent more than the 3,675 units in the same period last year. - THE STRAITS TIMES