New Reporter
18-12-20, 12:08
New home sales rebound in November on vaccine optimism and new launches
With the momentum continuing this month, full-year 2020 new sales volume is expected to reach 9,000-10,000 units, compared with 9,912 units last year
Fri, Dec 11, 2020
SIOW LI SEN
HOME buyers snapped up new condos last month, pushing new private home sales in November to 749, up 16.7 per cent from October's 642.
November's figures were boosted by strong demand at new launches - The Linq @ Beauty World and The Landmark. These two projects collectively sold 228 units in November, accounting for about 30 per cent of the month's transactions.
This brings the January-November total to 8,770 units, according to consultants who looked at caveats filed. New private home sales last month was 35.7 per cent lower compared to November 2019.
The Urban Redevelopment Authority will release the monthly new home sales data on December 15.
With the momentum continuing this month, full year 2020 new sales volume is expected to come between 9,000 and 10,000 units.
It was a very good month for November, said Lee Sze Teck, Huttons Asia director (research).
"The market remains on track to meet the target of 9,500 units in 2020," said Mr Lee. Last year, total new home sales stood at 9,912 units.
According to Christine Sun, OrangeTee & Tie head of research & consultancy, November's good showing was due to "vaccine optimism" and hopes of economic recovery.
Covid-19 mass vaccination has begun in the UK and Singapore should not be too far behind. The economy appears on track to shrink 6 per cent in 2020, although unemployment could rise further by year-end, according to private-sector economists polled by the Monetary Authority of Singapore in the latest quarterly survey. But GDP is expected to recover by 2021 with a 5.5 per cent growth, say the economists.
Ismail Gafoor, PropNex chief executive, offers a further reason for November's robust performance. "We have observed that there is a strong correlation between monthly new private home sales and whether there are new project launches during the month," he said.
This was demonstrated where new launches such as Penrose, Verdale and Myra boosted September's monthly sales volume, and again in November, where the launch of The Linq@Beauty World and The Landmark propped up transactions, said Mr Ismail.
Meanwhile, in October there was only one new project, Hyll on Holland which did not add significantly to the sales tally that month, he said.
"Likewise, in December, we anticipate new home sales to be supported by the 660-unit Ki Residences which sold 143 units on its launch weekend, as well as 640-unit Clavon that is slated to be launched later this month," he said.
November's bestsellers The Linq @ Beauty World and The Landmark - both in the Rest of Central Central (RCR) - were sold at prices higher than some other popular RCR projects due to their specific attributes, said Mr Ismail.
The Linq @ Beauty World sold 119 out of 120 units (99.2 per cent take-up) at a median price of S$2,171 psf.
The strong demand for The Linq @ Beauty World is due to several factors: 1) it is a freehold property; 2) it is a mixed development with commercial space; 3) its proximity to the Beauty World MRT station; and 4) its location in Beauty World that has been earmarked for transformation, said Mr Ismail.
For those reasons, The Linq @ Beauty World has been able to garner higher pricing than some RCR projects, he said.
Over at The Landmark in Chin Swee Road, 109 units were sold at a median price of S$2,135 psf in November.
The developer released 120 units out of the total 396 units in the development for sale last month.
"What is supporting prices and driving demand for units at The Landmark is primarily its prime location in the city centre, on the cusp of the central business district," said Mr Ismail.
Hutton's Mr Lee said December volume looks it could reach 700 units, citing Ki Residences' 143 take up at an average price of S$1,790 psf, through a virtual booking exercise last Saturday.
There's also this weekend's launch of the 640-unit Clavon in Clementi Avenue 1 where pricing starts from S$1,475 psf which should bring out the buyers, said Mr Lee.
"I expect it (Clavon) to do very well as the developer has priced it on how they read the market, the competition and the sales volume they want to achieve," added Mr Lee.
Four resale units this year at nearby Clement Canopy fetched a median price of S$1,481 psf, said OrangeTee & Tie's Ms Sun. Comparable project Parc Clematis has a median unit price of $1,634 per sq ft, while Kent Ridge Hill Residences' median unit price was $1,770 per sq ft for the January-to-October period.
With the momentum continuing this month, full-year 2020 new sales volume is expected to reach 9,000-10,000 units, compared with 9,912 units last year
Fri, Dec 11, 2020
SIOW LI SEN
HOME buyers snapped up new condos last month, pushing new private home sales in November to 749, up 16.7 per cent from October's 642.
November's figures were boosted by strong demand at new launches - The Linq @ Beauty World and The Landmark. These two projects collectively sold 228 units in November, accounting for about 30 per cent of the month's transactions.
This brings the January-November total to 8,770 units, according to consultants who looked at caveats filed. New private home sales last month was 35.7 per cent lower compared to November 2019.
The Urban Redevelopment Authority will release the monthly new home sales data on December 15.
With the momentum continuing this month, full year 2020 new sales volume is expected to come between 9,000 and 10,000 units.
It was a very good month for November, said Lee Sze Teck, Huttons Asia director (research).
"The market remains on track to meet the target of 9,500 units in 2020," said Mr Lee. Last year, total new home sales stood at 9,912 units.
According to Christine Sun, OrangeTee & Tie head of research & consultancy, November's good showing was due to "vaccine optimism" and hopes of economic recovery.
Covid-19 mass vaccination has begun in the UK and Singapore should not be too far behind. The economy appears on track to shrink 6 per cent in 2020, although unemployment could rise further by year-end, according to private-sector economists polled by the Monetary Authority of Singapore in the latest quarterly survey. But GDP is expected to recover by 2021 with a 5.5 per cent growth, say the economists.
Ismail Gafoor, PropNex chief executive, offers a further reason for November's robust performance. "We have observed that there is a strong correlation between monthly new private home sales and whether there are new project launches during the month," he said.
This was demonstrated where new launches such as Penrose, Verdale and Myra boosted September's monthly sales volume, and again in November, where the launch of The Linq@Beauty World and The Landmark propped up transactions, said Mr Ismail.
Meanwhile, in October there was only one new project, Hyll on Holland which did not add significantly to the sales tally that month, he said.
"Likewise, in December, we anticipate new home sales to be supported by the 660-unit Ki Residences which sold 143 units on its launch weekend, as well as 640-unit Clavon that is slated to be launched later this month," he said.
November's bestsellers The Linq @ Beauty World and The Landmark - both in the Rest of Central Central (RCR) - were sold at prices higher than some other popular RCR projects due to their specific attributes, said Mr Ismail.
The Linq @ Beauty World sold 119 out of 120 units (99.2 per cent take-up) at a median price of S$2,171 psf.
The strong demand for The Linq @ Beauty World is due to several factors: 1) it is a freehold property; 2) it is a mixed development with commercial space; 3) its proximity to the Beauty World MRT station; and 4) its location in Beauty World that has been earmarked for transformation, said Mr Ismail.
For those reasons, The Linq @ Beauty World has been able to garner higher pricing than some RCR projects, he said.
Over at The Landmark in Chin Swee Road, 109 units were sold at a median price of S$2,135 psf in November.
The developer released 120 units out of the total 396 units in the development for sale last month.
"What is supporting prices and driving demand for units at The Landmark is primarily its prime location in the city centre, on the cusp of the central business district," said Mr Ismail.
Hutton's Mr Lee said December volume looks it could reach 700 units, citing Ki Residences' 143 take up at an average price of S$1,790 psf, through a virtual booking exercise last Saturday.
There's also this weekend's launch of the 640-unit Clavon in Clementi Avenue 1 where pricing starts from S$1,475 psf which should bring out the buyers, said Mr Lee.
"I expect it (Clavon) to do very well as the developer has priced it on how they read the market, the competition and the sales volume they want to achieve," added Mr Lee.
Four resale units this year at nearby Clement Canopy fetched a median price of S$1,481 psf, said OrangeTee & Tie's Ms Sun. Comparable project Parc Clematis has a median unit price of $1,634 per sq ft, while Kent Ridge Hill Residences' median unit price was $1,770 per sq ft for the January-to-October period.