The shape of things to come

WHAT were the takeaways from Monday’s data download on new home sales in April?

1. Volume was up 80 per cent from March to 887 units - largely from two launches in particular. Sales were up year-on-year, and the highest in seven months. 2. Volume is still some way from the last peak of 1,355 new units sold in May 2022, and nowhere near the 2,793 new units sold in March 2013. 3. Pricing at the top of the market, in new prime projects, is starting to soften. 4. Take-up at new launches is now price-sensitive.  5. Developers may come under some pressure to lower prices to close the gap in sales from investment buyers dropping out.

Data also shows that foreign buying of private homes was at a five-year high in Q1, just before the government rolled out its latest intervention at the end of April. With the much-higher additional buyer’s stamp duty (ABSD) for foreigners now in place, agents report that while they are still taking viewings, buyers are “less forthcoming”.