Private residential property sales increased 18.6% q-o-q to 5,202 units in 1Q2017, according to the latest report by Edmund Tie & Co. It said the increase was due to the 27.9% q-o-q increase in primary sales, with Singaporeans forming the majority of buyers, comprising 76.1% of all residential property purchases and 79.2% of primary sales.

The improvement in demand had also helped ease the pressure on prices. URA’s residential property price index showed private non-landed home prices stabilising, falling 0.36% q-o-q to 136.7 in 1Q2017, compared with the drops of 0.43%, 1.5% and 0.51% in 2Q2016, 3Q2016 and 4Q2016, respectively.

The supply-side pressure on prices was also reduced because of the measured approach taken by the government through its government land sales (GLS) programme. The total number of potential units that can be launched fell 9.3% q-o-q to 18,754 units.

ET&Co says it anticipates an increase in the number of sites acquired via collective sales, private negotiation and the triggering of reserved sites — such as the land parcel on Stirling Road that was triggered for $685.25 million ($572 psf per plot ratio) in April.

ET&Co forecasts that private-home prices are likely to stabilise despite uncertain external events and slower economic growth. It highlighted potential rate hikes by the US Federal Reserve, and geopolitical events such as the Australian budget, China’s measures and Indonesian politics as some of the key reasons that may put a lid on the rapid recovery of the residential market.