THE mini boom that started in the sale of new flats has now spread to the resale homes market, with transactions rocketing 71 per cent in the second quarter.
The mini boom that started in the sale of new flats has now spread to the resale homes market, with transactions rocketing 71 per cent in the second quarter. --ST PHOTO: STEVEN LEE CTSellers have quickly become attuned to the unexpected resurgence in demand and are jacking up asking prices, according to consultants Jones Lang LaSalle.
Much of the demand is coming from HDB upgraders who are still able to get reasonable prices for their flats, allowing them to move up the housing ladder.
The activity in the resale market follows strong sales of new private homes. Levels have exceeded 1,000 units every month since February compared with a monthly average of 330 units last year.
Prices generally are also showing resiliance amid the downturn, with resale prices beginning to rise in all categories.
The property sector rallies seem to contradict prevailing economic realities, something industry experts acknowledge.
DTZ's head of Southeast Asia research, Ms Chua Chor Hoon, told a property seminar on Wednesday that it is too early to tell if the Singapore market is on its way to recovery: 'Unlike Hong Kong, we don't have a China behind us.'
Jones Lang LaSalle's head of research for Southeast Asia, Dr Chua Yang Liang, told The Straits Times: 'My concern is that the price rise in the resale market is not supported by economic growth or personal income growth.'
It is instead largely backed by money earned in the previous bull run, which is not sustainable, he added.
Dr Chua reckons there's 'a bit of froth' in the market as the surge in resale activity and prices are not supported by fundamentals.
