Don’t rejoice yet: Why May’s property sales are not cause for joy

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From URA Website.

From URA website.

[Here’s more from Maybank Kim Eng:

YTD sales of 4,010 units (excluding ECs) were just half of last corresponding period’s. We thus cut our full-year new home sales projection by ~30% to 9,000-10,000 units (from 13,000-14,000 units).

In view of this, we cut our full-year new home sales projection (excluding ECs) by ~30% to 9,000-10,000 units (from 13,000-14,000 units).

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The key catalysts for the expected price decline include:

i) More developers adopting a ‘priced-to-sell’ approach to reduce inventory risks;

ii) Prospective homebuyers holding back in anticipation of the surge in physical completions in 2015 and 2016; and 

iii) Continued weakness in the HDB resale market to negatively impact the wealth effect, reducing upgraders’ demand for mass market private homes.]