It surged 78% to approximately 9,780 registrations in the first half of 2017.
Primary transaction volume in 1H17 hit the highest level since 2004 and analysts expect it to remain resilient in 2H17 amidst the strong end-user demand. This should be positive for developers.
"Whilst home prices have picked up ~9.5% YTD, we reckon there could be some potential policy risks ahead, but should not be too drastic. Instead, we think ensuring a continuous increase in land supply should be at the top of the new government’s agenda. We believe expediting farmland conversion could be one option," said Maybank Kim Eng.
Here's more from the brokerage firm:
Primary transaction volume rose 78% YoY to ~9,780 registrations during 1H17, the highest since 2004. However, secondary transaction volume has dropped further, contributing 68% of total transaction volume vs. 70% in 1H16.
We believe this is mainly due to side effects of government tightening policies which has led to developers offering higher LTV mortgage to primary home buyers. L
Looking into 2H17, we expect end user demand to stay strong and hence primary market will be the key driver of the residential property market. Meanwhile, we believe smaller home sizes will remain the trend going forward. Overall, we estimate there could potentially be ~16,898 units in the project pipeline in 2H17, and SHKP will have the largest saleable resources.
Do you know more about this story? Contact us anonymously through this link.