August new home sales plunge 64.3% m-o-m

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/ EdgeProp
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September 17, 2018 6:00 PM SGT
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The crowd at Mayfair Gardens, which previewed over the weekend of Sept 15 (Credit: The Edge Property)
Developers sold 616 private residential units in August, a dive of 64.3% from 1,724 units sold in July, and a fall of 50.6% compared to 1,246 homes sold in August 2017, based on URA flash estimates.
Property consultants have attributed the lower sales in August to the property cooling measures - higher Additional Buyer's Stamp Duty and Loan-To-Value rates - imposed by the Singapore government that took effect on July 6. The “true effect” of the measures is reflected in sales this August as home buyers rushed to lock in their purchases on July 5 before the measures took effect, says Tricia Song, head of research for Singapore at Colliers International.
Other reasons cited were the holdback of launches during the Hungry Ghost Month (Aug 11 to Sept 9). Including ECs, 534 units were launched in August, a dip of 76.2% m-o-m.
January to August 2018 saw 6,287 private residential units sold, 25.1% down from 8,397 units sold during the same period last year.
OrangeTee & Tie observed that the increased ABSD - of up to 20% - for foreigners has impacted sales for that market segment. According to caveats lodged with URA as at Sept 17, foreigners’ share of non-landed housing fell to a low of 5.1% in August, down 7.4% y-o-y. The last low was in July 2015, when foreigners accounted for 4.2% of the market. In contrast, sales to Singaporeans have “remained resilient” post-measures, rising 8% y-o-y to 83.6% in August.
There were four new launches in August: The Tre Ver, 8 Saint Thomas, Casa Al Mare, and Mont Botanik. The Tre Ver was the top selling residential project, at 164 units sold, fetching a median price of $1,551 psf.
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The top five selling private residential projects for Aug 2018 (Source: Huttons)
Colliers’ Song believes that the property cooling measures have been effective in preventing new home prices from moving upwards....