THE euphoria in the private home market is tipped to start tapering off in the wake of the weaker stock market, although no one expects sales to plunge to the dismal levels seen late last year.

Recent sales data suggests the market has touched bottom and is climbing its way back up, spurred by developers cutting prices and offering incentives as well as a feeling among buyers that they had better move fast before the bargains go.

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New private home sales have crossed the 1,000 unit mark every month since February with 1,668 transactions last month, the highest since August 2007, according to data from the Urban Redevelopment Authority yesterday.

Deals done in April and last month show that home prices have generally risen from their first-quarter lows, said CBRE Research.

Knight Frank chairman Tan Tiong Cheng points to a lift in confidence: 'There's a bit of euphoria out there, brought about by the recovery of stock markets around the world since March, and many who have made money in the stock market would have ploughed it back into the property market.'

Developers have begun testing the market by pushing prices up by, say, 2 per cent to 3 per cent a week, consultants said.

And some buyers have been rushing to showflats and putting down deposits - much like the boom days, even though Singapore remains in a recession.

However, the increased activity remains confined to the residential market, said Mr Desmond Sim, Jones Lang LaSalle's associate director of research.

'This, in our regard, is largely fuelled by softer prices and strong latent demand, which alone will not be sufficient to sustain an overall recovery in the market,' he said.

Unless the overall economy improves, it may still take 'quite some time' before the super-luxury launches come back.

Read the full story in Tuesday's edition of The Straits Times.