reporter2
20-06-22, 13:23
Singapore new private home sales more than doubled to 1,356 units in May
Jun 15, 2022
NEW private home sales more than doubled in May on the back of major launches. Developers in Singapore sold 1,356 new homes last month, up 105.5 per cent from April’s 660 units.
Sales last month also hit a 6-month high as monthly figures have been hovering around 600 units since cooling measures were introduced in December last year.
According to property analysts, the rebound was not unexpected. OrangeTee & Tie senior vice-president of research and analytics Christine Sun noted market sentiment typically recovers around 2 to 6 months after each round of cooling measures.
“Market confidence has improved since Singapore lifted most of the safe management measures in April, and business sentiment picked up significantly across many sectors,” she said.
Wong Siew Ying, head of research and content at PropNex Realty added that sales were lifted by 2 big projects launched last month: the 407-unit Piccadilly Grand at Farrer Park and the 298-unit Liv @ MB at Marine Parade.
During their launch weekends, Piccadilly Grand sold 318 units or 78.1 per cent of the project at a median price of S$2,175, while Liv @ MB moved 236 units or 79.2 per cent at a median price of S$2,405. The 2 were last month’s best-selling projects, followed by Normanton Park, The Florence Residences, Avenue South Residence and The Gazania.
Wong said: “The strong take-up suggested that demand and liquidity are still intact amid global economic headwinds.”
“Buyers may also review the average selling prices of new homes in recent months and assess that prices have not fallen substantially. With land prices staying firm, some buyers may also take the view that selling prices of future launches are likely to remain elevated. Furthermore, some purchasers may decide to buy sooner rather than later to lock in a more favourable interest rate, in anticipation of further rate hikes,” she added.
Higher prices
Beside sales volume, prices have also trended upwards - the common range has become between S$1.5 million and S$2 million, compared to previously when the bulk of purchases were priced at less than S$1.5 million, noted Lee Sze Teck, senior research director at Huttons Asia. Some 26.1 per cent of the transactions in May were priced below S$1.5 million, 30.4 per cent were between S$1.5 million and S$2 million and 43.5 per cent above S$2 million.
Sun added that 216 transactions were priced at S$3 million or higher last month, the highest number of sales inked since April 2010 when 238 units were sold.
She said: “The growing number of higher-priced transactions indicates that some buyers’ affordability has increased over the years, and there is a greater appetite for pricier homes.”
There were 4 new homes transacted above S$10 million, the priciest 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 for a new condo sale on record.
The outside of central region (OCR) also saw a record of 22 new homes excluding ECs sold above S$2,200 in May - 10 of which were units of freehold projects The Gazania and The Lilium priced over S$2,400 psf, Sun noted.
Some 65.9 per cent of last month’s sales excluding ECs were in the rest of central region (RCR). Boosted by major launches, the region saw 893 units changing hands, up 206.9 per cent from the previous month. Meanwhile, the OCR and the core central region (CCR) saw 247 units (18.2 per cent) and 216 units (15.9 per cent) transacted respectively.
Market outlook
Since the implementation of the Vaccinated Travel Framework from April onwards, more high-net-worth-individuals from around Asia have been looking towards Singapore for private home investment opportunities, especially for luxury properties in the CCR, Wong noted.
Foreigners and permanent residents made up 84 and 142 units of May’s sales respectively, up from 52 and 79 units respectively in April.
There were 20 units of executive condominiums (ECs), which are a public-private hybrid, sold in May 2022. This brought the total to 1,376 new homes including ECs transacted last month, up 62.6 per cent from the previous month’s 846 units. North Gaia will remain the only EC project with units for sale in the market until the next launch at Tengah in Q4 2022.
Lee said: “It will be a quiet month in June with no major launches planned. With depleting unsold units, sales may go below 600 units.”
However, Q3 is expected to welcome a number of major launches 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, is expected to house 105 units.
“With more launches on the cards, we anticipate that new home sales will continue to pick up in the coming months,” Sun said.
https://www.businesstimes.com.sg/real-estate/singapore-new-private-home-sales-more-than-doubled-to-1356-units-in-may
Jun 15, 2022
NEW private home sales more than doubled in May on the back of major launches. Developers in Singapore sold 1,356 new homes last month, up 105.5 per cent from April’s 660 units.
Sales last month also hit a 6-month high as monthly figures have been hovering around 600 units since cooling measures were introduced in December last year.
According to property analysts, the rebound was not unexpected. OrangeTee & Tie senior vice-president of research and analytics Christine Sun noted market sentiment typically recovers around 2 to 6 months after each round of cooling measures.
“Market confidence has improved since Singapore lifted most of the safe management measures in April, and business sentiment picked up significantly across many sectors,” she said.
Wong Siew Ying, head of research and content at PropNex Realty added that sales were lifted by 2 big projects launched last month: the 407-unit Piccadilly Grand at Farrer Park and the 298-unit Liv @ MB at Marine Parade.
During their launch weekends, Piccadilly Grand sold 318 units or 78.1 per cent of the project at a median price of S$2,175, while Liv @ MB moved 236 units or 79.2 per cent at a median price of S$2,405. The 2 were last month’s best-selling projects, followed by Normanton Park, The Florence Residences, Avenue South Residence and The Gazania.
Wong said: “The strong take-up suggested that demand and liquidity are still intact amid global economic headwinds.”
“Buyers may also review the average selling prices of new homes in recent months and assess that prices have not fallen substantially. With land prices staying firm, some buyers may also take the view that selling prices of future launches are likely to remain elevated. Furthermore, some purchasers may decide to buy sooner rather than later to lock in a more favourable interest rate, in anticipation of further rate hikes,” she added.
Higher prices
Beside sales volume, prices have also trended upwards - the common range has become between S$1.5 million and S$2 million, compared to previously when the bulk of purchases were priced at less than S$1.5 million, noted Lee Sze Teck, senior research director at Huttons Asia. Some 26.1 per cent of the transactions in May were priced below S$1.5 million, 30.4 per cent were between S$1.5 million and S$2 million and 43.5 per cent above S$2 million.
Sun added that 216 transactions were priced at S$3 million or higher last month, the highest number of sales inked since April 2010 when 238 units were sold.
She said: “The growing number of higher-priced transactions indicates that some buyers’ affordability has increased over the years, and there is a greater appetite for pricier homes.”
There were 4 new homes transacted above S$10 million, the priciest 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 for a new condo sale on record.
The outside of central region (OCR) also saw a record of 22 new homes excluding ECs sold above S$2,200 in May - 10 of which were units of freehold projects The Gazania and The Lilium priced over S$2,400 psf, Sun noted.
Some 65.9 per cent of last month’s sales excluding ECs were in the rest of central region (RCR). Boosted by major launches, the region saw 893 units changing hands, up 206.9 per cent from the previous month. Meanwhile, the OCR and the core central region (CCR) saw 247 units (18.2 per cent) and 216 units (15.9 per cent) transacted respectively.
Market outlook
Since the implementation of the Vaccinated Travel Framework from April onwards, more high-net-worth-individuals from around Asia have been looking towards Singapore for private home investment opportunities, especially for luxury properties in the CCR, Wong noted.
Foreigners and permanent residents made up 84 and 142 units of May’s sales respectively, up from 52 and 79 units respectively in April.
There were 20 units of executive condominiums (ECs), which are a public-private hybrid, sold in May 2022. This brought the total to 1,376 new homes including ECs transacted last month, up 62.6 per cent from the previous month’s 846 units. North Gaia will remain the only EC project with units for sale in the market until the next launch at Tengah in Q4 2022.
Lee said: “It will be a quiet month in June with no major launches planned. With depleting unsold units, sales may go below 600 units.”
However, Q3 is expected to welcome a number of major launches 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, is expected to house 105 units.
“With more launches on the cards, we anticipate that new home sales will continue to pick up in the coming months,” Sun said.
https://www.businesstimes.com.sg/real-estate/singapore-new-private-home-sales-more-than-doubled-to-1356-units-in-may