Too soon to say property market is recovering
 

Indications the local property market is finally turning the corner are piling up but analysts are waiting for more evidence before calling it.

The latest sign of a resurgence in new private home sales was a Hougang executive condominium (EC) selling out in just seven hours last weekend. It was the first time since 2014 the market has witnessed such a feat.

However, experts are looking for more indications that falling prices have finally bottomed out and are on their way up.

Rising market optimism - driven by a recent tweak in certain cooling measures, a healthy stock market and still-low interest rates - has helped to spur new home sales.

But despite the increase in sales, analysts say it is premature to declare that the market is out of the woods as the recovery is not broad-based.

Mr Nicholas Mak, head of research and consultancy at ZACD Group, noted: "Typically, in a boom market, prices, rentals and sales volume will all increase. We have not seen that yet."

Mr Wong Xian Yang , head of research and consultancy at OrangeTee, added: "The good performances of recent launches indicate that there is pent-up demand. (But) prices have stubbornly continued to decline.

"So it might be too soon to say that the market has finally turned a corner."

Estimates show home values dipped by 0.3 per cent from the first to second quarter this year. Prices have sunk about 11 per cent since a peak in the third quarter of 2013.

As prices have moderated, sales have climbed. More than 6,500 new private homes (excluding ECs) have been sold in the first half-year, up markedly by 72 per cent from the 3,814 homes sold a year ago.

Analysts expect the brisk buying activity to continue but noted that not every project will be a sell-out.

Hundred Palms Residences EC in Hougang shifted all 531 units at an average of $836 per square foot (psf) within seven hours of their launch on Saturday.