Singapore new private home sales more than doubled to 1,356 units in May

by Albert02

Singapore new private home sales more than doubled to 1,356 units in May

Singapore new private home sales more than doubled to 1,356 units in May. Due to major launches, new private home sales more than doubled in May. Singapore developers sold 1,356 new homes last month, a 105.5 percent increase from April’s 660 units.

Sales last month also reached a 6-month high, with monthly figures hovering around 600 units since cooling measures were implemented in December of last year.

Property analysts say the rebound was not unexpected. Christine Sun, senior vice president of research and analytics at OrangeTee & Tie, noted that market sentiment typically recovers 2 to 6 months after each round of cooling measures.

“Since Singapore lifted the majority of the safe management measures in April, market confidence has increased, and business sentiment has improved significantly across many sectors,” she said.

Wong Siew Ying, PropNex Realty’s head of research and content, added that two large projects that opened last month, the 407-unit Piccadilly Grand at Farrer Park and the 298-unit Liv @ MB at Marine Parade, boosted sales.

Piccadilly Grand sold 318 units, or 78.1 percent of the project, for S$2,175, while Liv @ MB sold 236 units, or 76.2 percent of the project, for S$2,405. Last month, Normanton Park, The Florence Residences, Avenue South Residence, and The Gazania sold the most units.

“The strong take-up suggested that demand and liquidity are still intact despite global economic headwinds,” Wong said.

“Buyers may also examine the average selling prices of new homes in recent months and conclude that prices have not dropped significantly.” With land prices remaining stable, some buyers may believe that the selling prices of future launches will remain high. Furthermore, some buyers may decide to purchase sooner rather than later in order to lock in a lower interest rate in anticipation of future rate hikes,” she added.

Higher prices

Aside from sales volume, prices have also risen – the common range has risen to between S$1.5 million and S$2 million, up from less than S$1.5 million previously, according to Lee Sze Teck, senior research director at Huttons Asia. In May, 26.1 percent of transactions cost less than S$1.5 million, 30.4 percent cost between S$1.5 million and S$2 million, and 43.5 percent cost more than S$2 million.

According to Sun, 216 transactions worth S$3 million or more were completed last month, the most since April 2010, when 238 units were sold.

“The increasing number of higher-priced transactions indicates that some buyers’ affordability has increased over the years, and there is a greater appetite for pricier homes,” she explained.

Four new homes sold for more than S$10 million, with the most expensive unit being a freehold 6,092 square foot (sq ft) condo at Les Maisons Nassim that sold for S$37 million, or S$6,073 per square foot (psf). This is the fourth-highest psf price ever recorded for a new condo sale.

Sun reported that the outside of central region (OCR) saw a record of 22 new homes sold above S$2,200 in May, with 10 of them being units of freehold projects The Gazania and The Lilium priced over S$2,400 psf.

Excluding ECs, the rest of the central region accounted for 65.9 percent of last month’s sales (RCR). Due to major launches, the region saw 893 units change hands, a 206.9 percent increase from the previous month. Meanwhile, in the OCR and the core central region (CCR), 247 units (18.2 percent) and 216 units (15.9 percent) were transacted, respectively.

Market Outlook

Wong stated that since the implementation of the Vaccinated Travel Framework in April, more high-net-worth individuals from Asia have been looking to Singapore for private home investment opportunities, particularly luxury properties in the CCR.

Foreigners and permanent residents accounted for 84 and 142 units of sales in May, respectively, up from 52 and 79 units in April.

In May 2022, 20 executive condominiums (ECs), which are a public-private hybrid, were sold. This brought the total number of new homes sold last month, including ECs, to 1,376 units, a 62.6 percent increase over the previous month’s 846 units. North Gaia will be the market’s only EC project with units for sale until the next launch at Tengah in Q4 2022.

“June will be a quiet month with no major launches planned,” Lee said. As unsold inventory depletes, sales may fall below 600 units.”

However, a number of major launches are planned for Q3, including the 372-unit AMO Residence at Ang Mo Kio Avenue 1, the 268-unit Sceneca Residence at Tanah Merah, and the 605-unit Lentor Modern mixed development. Sky Eden @ Bedok will have 158 units, while The Arden at Phoenix Road in District 23 will have 105.

“With more launches on the horizon, we anticipate a pickup in new home sales in the coming months,” Sun said.

Click the image to read the full details of report.
Source: https://www.businesstimes.com.sg/real-estate/singapore-new-private-home-sales-more-than-doubled-to-1356-units-in-may

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