S’pore new private home sales flat in April, likely climb in coming months

by Albert02

S’pore new private home sales flat in April, likely climb in coming months

S’pore new private home sales flat in April, likely climb in coming months. Despite a lack of new launches, developers in Singapore sold 653 new private residential units in April, excluding executive condos (ECs).

According to data issued by the Urban Redevelopment Authority (URA) on Tuesday, this is practically unchanged from the 654 sold the previous month (May 17).

However, property analysts expect sales to pick up soon, owing to major new condominium projects like the 407-unit Piccadilly Grand and the 298-unit Liv @ MB.

Last month’s new sales, excluding ECs, decreased by 48.6% from the 1,270 transactions in April 2021, when there were four property launches.

Despite the festive season and the lack of notable launches, Lee Sze Teck, Huttons senior director (research), noted that monthly new sales in 2022 have so far hovered between 650 and 700 units.

Except for the 616-unit North Gaia, an EC project, there were no notable debuts last month, according to Christine Sun, senior vice president of research and analytics at OrangeTee & Tie.

She also stated that new home sales “appear to have stabilized” four months after the last set of cooling measures were enacted on December 16.

Buyers were driven to lock in mortgage rates ahead of more interest rate hikes, pent-up demand after the cooling measures, and demand from upgraders on the basis of good Housing Board (HDB) resale flat prices, according to Catherine He, Colliers’ head of research in Singapore.

According to URA data, the rest of central region (RCR) or city edge saw the most new sales volume in April, with 289 units sold, followed by the core central region (CCR) with 206 and the outside central region (OCR) or suburbs with 158.

It’s the first time in a year that new CCR sales have outpaced new OCR sales. “Buyers have boosted their budgets and traded up to the next tier of private housing in the RCR or CCR because of the limited level of unsold stock in the OCR,” Lee explained.

The share of deals priced at S$2 million and above grew to 54.8 percent, the highest level in at least a year and indicating significant liquidity in the market, he noted.

Sun noticed that the cooling measures did not appear to have stopped buyers’ enthusiasm for luxury residences at the upper end of the private residential market. Transactions of at least S$3 million surged to 115 units this month, up from 89 units in March 2022, according to URA Realis caveats statistics. Over the same period, sales of private residences costing S$5 million or more surged to 35 units, up from 24 units prior, she said.

In April of this year, developers sold a total of 839 new homes, including the 186 EC apartments. This represents a 19.5% increase over the 702 traded units in March.

In Yishun, the North Gaia EC project sold 166 homes, or 26.9% of all available units.

Normanton Park, Riviere, One Pearl Bank, and The Florence Residences were among the best-selling developments in April, according to Sun.

In terms of fresh launches, there were 397 new private residences – excluding ECs – put on the market in April, up from 309 units in March.

Last month, total launch volumes, including ECs, reached 1,013 units. In March, no EC units were available on the primary market.

Analysts predict that new private home sales will increase in the following months. In the aftermath of the December 16 cooling measures, Leonard Tay, head of research at Knight Frank Singapore, predicts that April 2022 will be “the last month when the market stays in a state of pause.”

The launch and sales momentum at Piccadilly Grand in May, with 315 units sold in its first weekend, as well as the amount of visitors at the Liv @ MB showflat, “should now encourage developers to start launching projects,” Tay said.

Piccadilly Grand, Atlassia, Baywind Residences, and Liv @ MB, according to Lee from Huttons, might see fresh sales of over 1,000 units in May. Piccadilly Grand, he believes, “established the tone for the market for the rest of the year,” selling 77% of its 407 units on launch day for an average of roughly S$2,150 per square foot (psf).

With building costs rising, project launches nearing S$2,000 psf will likely become the norm, and overall private property prices could rise by 3% this year, according to Lee.

Colliers’ Piccadilly Grand and Liv @ MB, he said, will enhance sales and prices in the RCR.

She expects new home sales to fall 20 to 30 percent this year, from 13,027 units in 2021 to approximately 10,000 units this year. This is because macroeconomic uncertainty, increasing additional buyer’s stamp duty rates, and rising mortgage rates will continue to dampen prospective purchasers’ enthusiasm.

According to Knight Frank’s Tay, new sales volumes are expected to catch up and reach 8,000 to 9,000 units for the entire year of 2022.

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S’pore new private home sales flat in April, likely climb in coming months

Source: https://www.businesstimes.com.sg/real-estate/singapore-new-private-home-sales-flat-in-april-likely-to-climb-in-coming-months

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