By Joyce Teo

The current rush to buy new private homes leaves businessman Alan Lim feeling cold.

That is because he recently lost $220,000 on the sale of his condo unit at The Inspira, off Mohamed Sultan Road, and is in no mood to shop for another.

He bought the unit for more than $1.4 million in 2006 as an investment and sold it in April for about $1.2 million. He wanted to sell it before the condo was completed.

Unlike Mr Lim, many other home hunters have put down money on new properties.

Sales of new private homes reached a recession-defying level of 1,668 units last month - the highest level since the property boom of August 2007.

Top sellers last month included Martin Place Residences in Kim Yam Road and The Wharf Residence in Tong Watt Road.

Buyers were drawn to the significant price cuts - up to 25 per cent lower than last year - at these projects.

Market watchers said the improved sentiment, which is in line with the recent stock market rally, has triggered a herd instinct.

But they warned that there are things to keep in mind when investing in a new apartment or house.