New launches in the city fringe and suburbs accounted for a higher proportion of new home sales and contributed to the price rebound.
But some property analysts questioned if the rebound was sustainable in the face of higher-for-longer interest rates, more upcoming launches and shrinking transaction volumes in the third quarter. The number of units sold fell by 15 per cent compared with the second quarter, and about 26 per cent year on year.
She cited weaker economic conditions and buyers becoming selective with the increase in new supply. “Pent-up demand has been mostly absorbed and genuine buyers are spoilt for choice,” she said. Even so, real estate agency PropNex’s chief executive Ismail Gafoor does not expect significant price cuts “as developers have to contend with rising costs and are affected by a new rule on gross floor area definitions that will eat into their saleable space”.