Strong Private Home Sales, Prices Point To Stabilising Property Market

Source: Strong Private Home Sales, Prices Point To Stabilising Property Market

The strong private home sales and prices achieved in the third quarter this year was probably underpinned by strong pent-up demand from both local and foreign buyers. It shows that the private property market has come to terms with the cooling measures imposed in July 2018. There is also little risk of a housing bubble forming given that prices were rising at a moderate pace. Underlying demand will support the property market. Therefore, this trend of moderate price growth and healthy home sales is likely to continue even as more projects are launched at a relatively high prices per square feet. With global uncertainties, projects like the Midtown Modern are stable long term assets compared to the other forms of investment.