by OrangeTee & Tie Pte Ltd.

New private home sales halved in Oct after clampdown on options to purchase

SRX Private Residential Data

SRX Private Residential

SG, 17 Nov 2020

Sales of new private homes by developers plunged 51.7 per cent in October from the previous month, putting the brakes on a five-month-long buying spree after new curbs were imposed on the re-issue of OTPs. Buyers took up just 642 units in October from a more than 2 year high of 1,329 units in September, according to figures from the URA. Private home sales fell 31.1 per cent from 932 units in October last year.

Ms Christine Sun, OrangeTee & Tie’s head of research and consultancy, said the new OTP curbs caused a knee-jerk reaction that resulted in a temporary fall in sales volume. “As the property market is highly sentiment driven, the pull-back in housing demand is unsurprising. Some buyers could be waiting on the sidelines, hoping that developers will moderate prices in response to the sales decline,” she said. Those who are directly impacted by the new regulation might need time to settle outstanding issues in order to proceed with their home purchase, added Ms Sun.

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