New private home sales in S’pore hit 6-month high as tighter supply trumps cooling measures
New private home sales in S’pore hit 6-month high as tighter supply trumps cooling measures. Piccadilly Grand and [email protected], two major city-fringe launches, propelled new private home sales to a six-month high, as buyers absorbed the latest round of property cooling measures amid tighter supply.
Buyers purchased 1,356 units in May, more than doubling the 660 units purchased in April and 51.5 percent higher than a year ago, according to Urban Redevelopment Authority data released on Wednesday (June 15).
Analysts estimate that total sales excluding executive condominiums (ECs) are down 32% year to date to 3,841 units, compared to the same period last year.
In May, new home sales, including ECs, rose 62.6 percent to 1,376 units, up from 846 in April.
Last month, developers built 1,240 new homes, up from 397 in April, and the number of new units launched increased by 140 percent from 516 units a year earlier. In May, the number of new units launched, including ECs, increased by 22% over the previous month.
Mr Ong Teck Hui, senior director of research and consultancy at JLL, noted that new home sales in May were nearly back to the level seen in November 2021, prior to the December cooling measures.
“May’s new project launches were a good test of home buyers’ appetite in a market facing headwinds from cooling measures, rising interest rates, and macroeconomic uncertainty,” he said.
Ms Catherine He, Colliers Singapore’s head of research, cited pent-up demand for well-located projects, strong HDB resale prices, and buyers locking in mortgage rates ahead of future interest rate hikes.
According to Ms Wong Siew Ying, PropNex Realty’s head of research and content, the strong take-up at median prices of $2,175 per sq ft (psf) and $2,405 psf for Piccadilly Grand and Liv @ MB, respectively, is very encouraging.
“The lack of supply and new launches in the suburbs may have also channeled some buyers to the city outskirts, boosting sales in the two projects,” she added.
“With land prices remaining firm, some buyers may believe that selling prices for future launches will remain high.”
Mr. Ong stated that the strong sales in May may encourage developers to resume new product launches in the second half of this year.
“As a result, we may expect primary market home sales to be stronger in the second half of 2022 than in the first,” he said.
Several new launches are expected in the third quarter, including The Arden on Phoenix Road, AMO Residence on Ang Mo Kio Avenue 1, Lentor Modern on Lentor Central, and Sceneca Residence on Tanah Merah Kechil Link.
According to Christine Sun, senior vice-president of research and analytics at OrangeTee & Tie, the city outskirt accounted for 65.9 percent of new home sales in May, or 893 units, driven by [email protected] and Piccadilly Grand. The suburbs (18.2 percent, or 247 units) came next, followed by the prime district (15.9 percent , or 216 units).
Piccadilly Grand sold 78.1 percent of its 407-unit project last month, while [email protected] sold 79.2 percent (236 units). Other top condo sellers include The Florence Residences, Normanton Park, Avenue South Residence, and The Gazania.
More expensive condos were sold last month, with 84% of total sales priced between $1 million and less than $3 million. Sixteen percent of total transactions, or 216 units, sold for around $3 million, the most sales in that price range since April 2010, when 238 units were sold.
The most expensive transaction was a $3.53 million sale of a 1,841 square foot unit at The Lilium. This was followed by a $3.11 million deal for a 1,711 square foot unit at Parc Clematis.
Mr Lee Sze Teck, senior director of research at Huttons Group, noted that despite higher stamp duties, the number of new homes purchased by foreigners increased 58.5 percent to 84 in May, up from 53 in April. A Chinese national paid $87.6 million for 20 units at CanningHill Piers, he added.
Foreigners bought fewer than 30 units per month in the first quarter of this year, according to Ms Sun.
Purchases by permanent residents increased to 142 units in May, up from 79 units in April, as border restrictions were eased further.
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