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. New private home sales more than doubled in May due to major launches. Last month, Singapore developers sold 1,356 new homes, a 105.5 percent increase from April’s 660 units.
Sales also hit a 6-month high last month, with monthly figures hovering around 600 units since cooling measures were implemented in December of last year.
According to real estate analysts, the rebound was not unexpected. According to Christine Sun, senior vice president of research and analytics at OrangeTee & Tie, market sentiment usually recovers 2 to 6 months after each round of cooling measures.
“Market confidence has increased since Singapore lifted the majority of the safe management measures in April, and business sentiment has improved significantly across many sectors,” she said.
Wong Siew Ying, head of research and content at PropNex Realty, added that two large projects that opened last month boosted sales: the 407-unit Piccadilly Grand at Farrer Park and the 298-unit Liv @ MB at Marine Parade.
Piccadilly Grand sold 318 units, or 78.1 percent of the project, at a median price of S$2,175, while Liv @ MB sold 236 units, or 76.2 percent of the project, at a median price of S$2,405. The two projects sold the most last month, followed by Normanton Park, The Florence Residences, Avenue South Residence, and The Gazania.
“Despite global economic headwinds, the strong take-up suggested that demand and liquidity are still intact,” Wong said.
“Buyers may also look at recent average selling prices of new homes and conclude that prices have not dropped significantly.” With land prices remaining stable, some buyers may believe that future launch prices will remain high. Furthermore, some buyers may decide to buy sooner rather than later in order to lock in a lower interest rate ahead of future rate hikes,” she added.
Aside from sales volume, prices have also risen – the common range has risen to between S$1.5 million and S$2 million, compared to previously, when the majority of purchases were priced at less than S$1.5 million, according to Lee Sze Teck, senior research director at Huttons Asia. In May, 26.1 percent of transactions were priced below S$1.5 million, 30.4 percent were priced between S$1.5 million and S$2 million, and 43.5 percent were priced above S$2 million.
Sun also stated that 216 transactions worth S$3 million or more were completed last month, the most since April 2010, when 238 units were sold.
“The rising number of higher-priced transactions indicates that some buyers’ affordability has improved over time, and there is a greater appetite for more expensive homes,” she explained.
Four new homes sold for more than S$10 million, with the most expensive unit selling for S$37 million, or S$6,073 per square foot, in a freehold 6,092 square foot (sq ft) condo at Les Maisons Nassim (psf). This is the fourth-highest psf price for a new condo sale ever recorded.
According to the Sun, the outside of central region (OCR) saw a record of 22 new homes sold above S$2,200 in May, with ten of them being units of freehold projects The Gazania and The Lilium priced at more than S$2,400 psf.
The rest of the central region accounted for 65.9 percent of last month’s sales excluding ECs (RCR). The region saw 893 units change hands, up 206.9 percent from the previous month, thanks to major launches. Meanwhile, 247 units (18.2%) and 216 units (15.9%) were transacted in the OCR and the core central region (CCR), respectively.
Wong noted that since the implementation of the Vaccinated Travel Framework in April, more high-net-worth individuals from around Asia have been looking to Singapore for private home investment opportunities, particularly for luxury properties in the CCR.
Foreigners and permanent residents accounted for 84 and 142 unit sales in May, up from 52 and 79 units in April, respectively.
Twenty executive condominiums (ECs), a public-private hybrid, were sold in May 2022. Last month, the total number of new homes sold, including ECs, was 1,376 units, a 62.6 percent increase over the previous month’s 846 units. Until the next launch at Tengah in Q4 2022, North Gaia will be the market’s only EC project with units for sale.
“June will be a quiet month,” Lee said, “with no major launches planned.” Sales may fall below 600 units as unsold inventory depletes.”
However, a number of major launches are expected in 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 mixed development Lentor Modern. Sky Eden @ Bedok will have 158 apartments, while The Arden at Phoenix Road, District 23, will have 105.
“With more launches on the horizon, we expect new home sales to pick up in the coming months,” Sun said.
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