reporter2
12-04-22, 08:42
Singapore private home sales to rise in the coming months: analysts
Apr 11, 2022
Developer sales increased in March as home buyers are "coming to grips" with cooling measures, according to analysts. The growth also came as the Lunar New Year seasonal lull passes.
"The expected rise in interest rates also encouraged some people to buy properties and lock-in the current home mortgage rate," said Nicholas Mak, ERA Realty's head of research and consultancy.
"Geopolitical tensions have placed safe havens such as Singapore in the spotlight with foreign money flowing into properties," noted Lee Sze Teck, Huttons Asia senior research director.
OrangeTee & Tie senior vice-president of research and analytics Christine Sun added that no projects exceeding 200 units were launched last month.
Based on caveats lodged, analysts estimated that developers sold 651 new private homes last month, up 23.5 per cent from February's 527 units. Compared with the previous year, the estimates are 49.8 per cent lower than the 1,296 units sold in March 2021.
Last month also saw the sale of 48 executive condominiums (ECs), which are a public-private hybrid, up 50 per cent from 32 EC units sold in February, Mak noted. Including ECs, developers sold 699 units in March, up 25 per cent from the 559 units moved in February.
EC sales are expected to rise further this month with the launch of the 616-unit North Gaia at Yishun Close. Opened for e-application on April 7, North Gaia is expected to have an average price of between S$1,250 and S$1,280 per square price (psf).
"The first EC launch in Yishun since 2015 attracted more than a thousand in the first weekend of viewing. Sales could be as high as 50 per cent on the back of pent up demand," Lee said.
Analysts also expect the launch of major projects such as the 407-unit Piccadilly Grand and 298-unit LIV @ MB to further drive sales in April and May 2022.
Last month, the top-performing project including ECs by sales volume was Normanton Park, which sold 84 units at a median price of S$1,885 psf. This was followed by The Florence Residences and Ki Residences at Brookvale with 44 and 28 units respectively.
Meanwhile, several projects including 11 Bright Hill Residences, Affinity at Serangoon, One North Eden and View at Kismis were sold out in March, noted Lee.
https://i.imgur.com/RubDKUT.png
As much as 33.2 per cent of March's total new home sales excluding ECs came from the S$1.5 million to S$2 million bracket, the biggest proportion based on transaction prices. This was closely followed by homes in the S$2 million to S$3 million range, which accounted for 31.5 per cent of the volume.
https://i.imgur.com/7AtfLLY.png
Based on market segments, 48.8 per cent of last month's sales excluding ECs were in the rest of central region (RCR), while the outside of central region (OCR) and core central region (CCR) made up 27.6 per cent and 23.5 per cent respectively.
https://i.imgur.com/8C4helD.png
https://www.businesstimes.com.sg/real-estate/singapore-private-home-sales-to-rise-in-the-coming-months-analysts-0
Apr 11, 2022
Developer sales increased in March as home buyers are "coming to grips" with cooling measures, according to analysts. The growth also came as the Lunar New Year seasonal lull passes.
"The expected rise in interest rates also encouraged some people to buy properties and lock-in the current home mortgage rate," said Nicholas Mak, ERA Realty's head of research and consultancy.
"Geopolitical tensions have placed safe havens such as Singapore in the spotlight with foreign money flowing into properties," noted Lee Sze Teck, Huttons Asia senior research director.
OrangeTee & Tie senior vice-president of research and analytics Christine Sun added that no projects exceeding 200 units were launched last month.
Based on caveats lodged, analysts estimated that developers sold 651 new private homes last month, up 23.5 per cent from February's 527 units. Compared with the previous year, the estimates are 49.8 per cent lower than the 1,296 units sold in March 2021.
Last month also saw the sale of 48 executive condominiums (ECs), which are a public-private hybrid, up 50 per cent from 32 EC units sold in February, Mak noted. Including ECs, developers sold 699 units in March, up 25 per cent from the 559 units moved in February.
EC sales are expected to rise further this month with the launch of the 616-unit North Gaia at Yishun Close. Opened for e-application on April 7, North Gaia is expected to have an average price of between S$1,250 and S$1,280 per square price (psf).
"The first EC launch in Yishun since 2015 attracted more than a thousand in the first weekend of viewing. Sales could be as high as 50 per cent on the back of pent up demand," Lee said.
Analysts also expect the launch of major projects such as the 407-unit Piccadilly Grand and 298-unit LIV @ MB to further drive sales in April and May 2022.
Last month, the top-performing project including ECs by sales volume was Normanton Park, which sold 84 units at a median price of S$1,885 psf. This was followed by The Florence Residences and Ki Residences at Brookvale with 44 and 28 units respectively.
Meanwhile, several projects including 11 Bright Hill Residences, Affinity at Serangoon, One North Eden and View at Kismis were sold out in March, noted Lee.
https://i.imgur.com/RubDKUT.png
As much as 33.2 per cent of March's total new home sales excluding ECs came from the S$1.5 million to S$2 million bracket, the biggest proportion based on transaction prices. This was closely followed by homes in the S$2 million to S$3 million range, which accounted for 31.5 per cent of the volume.
https://i.imgur.com/7AtfLLY.png
Based on market segments, 48.8 per cent of last month's sales excluding ECs were in the rest of central region (RCR), while the outside of central region (OCR) and core central region (CCR) made up 27.6 per cent and 23.5 per cent respectively.
https://i.imgur.com/8C4helD.png
https://www.businesstimes.com.sg/real-estate/singapore-private-home-sales-to-rise-in-the-coming-months-analysts-0