Despite Covid-19, developers sell 10,024 homes in Singapore last year, exceeding 2019 levels: URA flash estimates

SINGAPORE (EDGEPROP) - Despite fewer private residential launches amid the ongoing pandemic last year, developers in Singapore still managed to sell 10,024 private housing units, which is 1.1% higher than the 9,912 units sold in 2019, based on URA flash estimates.

In December, developers sold 1,217 private housing units, 57.2% higher than that of November, which recorded 774 units sold.

The jump in sales was led by the launch of new residential projects in the month, such as Clavon and Ki Residences, which sold 473 and 172 units respectively. This is unlike the past, as the month of December is typically a quiet time in the real estate market due to the holiday season.

Last month, developers launched a total of 1,349 private residential units, marking the third highest number of units launched in a single month in 2020, observes ERA Research & Consultancy.

Buoyed by the sales at Clavon, sales volume in the Outside Central Region (OCR) performed best, accounting for 75.9% of the total new home sales (excluding ECs). This was followed by 19.1% of sales in the Rest of Central Region (RCR), and 4.9% in the Core Central Region (CCR). In fact, sales volume in the CCR experienced a fall of 29.4% m-o-m, recording only 60 units sold in December, notes Leonard Tay, head of research at Knight Frank Singapore.

Although no new Executive Condominium (EC) projects were launched in December, 48 EC units were sold in the month, maintaining the same number of units sold in November.

“As the vaccination programme is rolled out in Singapore, housing demand could increase further in the second half of this year as the economy and job market improve,” says ERA.

However, supply will be limited. “While demand for homes is still high, fuelled by low mortgage rates and ample liquidity from the massive stimulus programs, supply may start declining this year. Developers have been paring down their unsold stock as many projects have been selling units consistently throughout the pandemic,” comments Christine Sun, senior vice-president of research & analytics at OrangeTee & Tie.

“The imbalance between supply and demand may keep home prices firm and even rising in some popular areas where new supply is limited,” Sun adds.