A total of 1,143 units were sold last month, a 36.6 per cent drop from August. Market watchers said this level of activity is more sustainable going forward.
5,719 units were sold in the third quarter alone, more than the whole of last year. But activity has tapered off since, and observers said it is unlikely to test the record sales of 2,772 units in July going forward.
Analysts said that is partly due to the government's anti-speculative measures that have kept speculators away.
At the same time, some developers have also delayed new launches during the Lunar seventh month period, which is a traditionally a low season for the property market.
Market watchers said the pent-up demand seen in the last two quarters has fizzled out. And for the last three months of the year, they expect private home sales to range between 800 and 1,000 units a month.
The development that sold the highest number of units last month was Hundred Trees at West Coast. 327 out of the 350 units launched in the project were sold at a median price of S$941 per square foot.
The Interlace at Alexandra Road also saw strong sales, with 243 units sold at a median price of S$1,047 per square foot.
Only 99 high-end homes, priced above S$1,500 per square foot, were sold in September. The number was a sharp drop from the 421 that were sold in August.
Analysts said properties selling at S$1,000 per square foot and under may do better for now, but next year could see more upmarket launches.
Donald Han, managing director of Cushman & Wakefield, said: "We are going to see us being placed as a cheaper alternative for some (investors) to put their investment dollar into Singapore.
"With the opening of the integrated resort, with more high net worth investors coming to Singapore, we think the higher mid-end, right up to the luxury segment of the residential market, would probably see better reception."
Observers expect home prices to rise about 5 per cent in the fourth quarter, after a strong run-up in the last three months. Home prices in the third quarter rose sharply, by 15.9 per cent.
"Now with the brightening economic outlook, buying momentum could still be sustained as buyers are now more confident of their ability to service their housing loan in light of greater job security," said Grace Ng, deputy MD of Agency & Business Services, Colliers International
Nearly 13,000 new homes were sold in the past 9 months. And experts project total sales volume for the year to exceed the record 14,811 transacted in 2007.
- CNA /ls
By Yasmine Yahya & Wong Siew Ying, Channel NewsAsia
Posted: 15 October 2009 1652 hrs
