Last month, some 2,207 new private homes were transacted, according to figures from the Urban Redevelopment Authority. This represents a jump of 25% from the previous month and a figure surpassed only by July 2009’s 2,767 units transacted.

PropNex CEO Mohamed Ismail commented, “The property market is certainly very bullish, although the majority of the units transacted in April did come from the mass- to mid-end markets. He was referring to the fact that 1,961 units or 88.8% of all the units, transacted for below a median price of $2,000 psf. The mass market units (transacted at below a median price of $1,000 psf) chalked up 1,274 units or 57.7% of the total figure.

“It would appear from these statistics that while investors’ confidence is growing, demand from upgraders obviously remains as a major market force,” noted Ismail.

“This is evident from the fact that the top three projects transacted all featured median prices of below $1,200psf,” he explained, referring to Waterbank at Dakota (573 units at $1,178 psf), Tree House (374 units at $835 psf) and The Interlace (144 units at $1,067 psf). Between them, these three projects registered 1,091 transactions, or 49.4% of all the units transacted.

While Ismail expects private residential property prices to remain buoyant, he does not expect the volume of transactions to maintain at current levels for the rest of the year.

“In the first four months of 2010, there have already been 6,640 transactions, about 45% of the total for last year which was a surprisingly good year to begin with,” he observed.

“Demand is expected to stabilise at a lower level of about 1,000 units transacted per month over the next quarter, although prices are not expected to fall in the near future,” ventured Ismail.