Drop in new home sales in February - Singapore

Sales of new homes slowed done dramatically last month. In all, a total of 185 units were sold in February, almost half of the 328 units sold in January.

The lacklustre performance, together with the increasing quietness of the market this month, prompted some experts to predict that new home sales this quarter could hit one of the lowest levels ever seen in Singapore, probably in the 700 to 800 range. ( during Asian financial crisis, 894 new units were sold in last quarter of 1997).

In comparison to the boom last year, where developers sold 14811 units or 3700 units on average each quarter, this looks like another slow year ahead. The global financial crisis originating from the United states seems to have taken its impact on us. Market confidence remain shaky until the extent of the US recession can be measured.