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, drove new private home sales to a six-month high, as buyers digested the latest round of property cooling measures amid tighter supply.
According to Urban Redevelopment Authority data released on Wednesday, 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 (June 15).
According to analysts, total sales excluding executive condominiums (ECs) are down 32% year to date to 3,841 units, compared to the same period last year.
New home sales, including ECs, increased 62.6 percent to 1,376 units in May, up from 846 in April.
Developers built 1,240 new homes last month, up from 397 in April, and the number of new units launched was up 140% from 516 units a year earlier. The number of new units launched in May, including ECs, increased by 22% over the previous month.
JLL’s senior director of research and consultancy, Mr Ong Teck Hui, noted that new home sales in May were nearly back to the level seen in November 2021, before the cooling measures were imposed in December.
“The new project launches in May were a good test of home buyers’ appetite in a market facing headwinds from cooling measures, rising interest rates, and macroeconomic uncertainty,” he said.
Colliers’ Singapore head of research, Ms Catherine He, cited pent-up demand for well-located projects, strong HDB resale prices, and buyers locking in mortgage rates ahead of further interest rate hikes.
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, according to Ms Wong Siew Ying, PropNex Realty’s head of research and content.
“The supply shortage and lack of 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 future launch prices will remain high.”
According to Mr. Ong, the strong May sales may encourage developers to resume new product launches in the second half of this year.
“As a result,” he said, “we may expect primary market home sales to be stronger in the second half of 2022 than in the first.”
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 are among the new launches expected in the third quarter.
According to OrangeTee & Tie senior vice-president of research and analytics Christine Sun, the city fringe accounted for 65.9 percent of new home sales in May, or 893 units, driven by [email protected] and Piccadilly Grand. This was followed by the suburbs (18.2%, or 247 units), and the prime district (15.9%, or 216 units).
Piccadilly Grand sold 78.1 percent of its 407-unit project last month, while [email protected] sold 236 units, or 79.2 percent. The Florence Residences, Normanton Park, Avenue South Residence, and The Gazania are among the other top condo sellers.
Last month, more expensive condos were sold, 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, representing the highest number of sales in that price range since April 2010, when 238 units were sold.
A 1,841 square foot unit at The Lilium sold for $3.53 million, the most expensive transaction. This was followed by a $3.11 million transaction for a 1,711 square foot Parc Clematis unit.
According to Mr Lee Sze Teck, senior director of research at Huttons Group, 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. He also mentioned a Chinese national who paid $87.6 million for 20 units at CanningHill Piers.
Foreigners purchased 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, after border restrictions were eased further.
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