August private new home sales dip 4.8% m-o-m to 1,122 units

By Charlene Chin
/ EdgeProp Singapore |
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SINGAPORE (EDGEPROP) - Private new home sales, excluding executive condos (ECs), fell by 4.8% m-o-m to 1,122 units in August, according to developers’ monthly sales data by URA. Including ECs, developers sold 1,167 units in August, reflecting a 25% fall m-o-m. The dip in transactions are “within expectations”, says OrangeTee & Tie, as there were no EC projects launched in August.
In comparison, the 820-unit Piermont Grand EC was launched in July, and sold 44 units in August. To date, 409 out of the 820 units at the EC has been sold.
In August, developers launched 979 private residential units, 7.5% more than the 911 units placed on the market in July. Of those, 45% of the newly launched units, or 465 units, came from Parc Clematis, the only new development that was launched in the month.
The top-selling private residential projects in August is Parc Clematis, which sold 316 units at a median price of $1,615 psf. This is followed by the Florence Residences, which saw 122 units sold at a median price of $1,438 psf. Treasure at Tampines transacted 93 units at a median price of $1,343 psf, while Parc Botannia sold 61 units at a median price of $1,328 psf. Parc Esta moved 47 units at a median price of $1,691 psf.
In particular, Florence Residences clocked its best monthly sales since its launch in March this year, with 31% of its units sold to date. Colliers attributes this to the possibility that buyers have begun to warm up to the competitive prices in the housing market. The median price of $1,438 psf fetched at Florence Residences looks “relatively attractive” compared to Parc Clematis’ median price of $1,615 psf, remarks Tricia Song, head of research for Singapore at Colliers. Both projects are in the Outside Central Region (OCR).
After moving 93 units in August, Treasure at Tampines, the largest private condo project in Singapore, is 30% sold to date. The private new home sales of 1,122 units in August reflect an 81.8% y-o-y jump from 617 units sold in the preceding year. “Typically, for the month of August, sales are relatively slower due to the Hungry Ghost Festival, resulting in fewer new launches,” says Ismail Gafoor, CEO of Propnex Realty.

‘Resilient demand’

Table: New home sales in August 2019 is one of the highest in recent years
Given past performance, the interest in the residential property market and demand from buyers have remained resilient in spite of the economic slowdown, says Ong Teck Hui, senior director of research & consultancy at JLL. “Adverse news on the 0.1% GDP growth in 2Q2019 and the Ministry of Trade and Industry’s downgrading of 2019’s GDP forecast to 0–1% do not seem to have an appreciable impact on the private home market thus far,” he adds.
OrangeTee notes: “Buying sentiment has remained largely sanguine despite the global market uncertainties and escalating trade tensions. Rising fears of the US-China trade war morphing into a full-blown currency war may have bolstered demand for properties here, where Singapore is widely regarded as a safe haven for long-term investments.”
Earlier this month, the Singapore government announced additional grants and new incentives for first-time home buyers purchasing HDB resale flats. OrangeTee foresees the policy change to boost upgrader demand for private homes. “Flat owners who have planned to buy a new private condominium may now find it easier and faster to offload their HDB resale flats with a larger pool of potential flat buyers.”
For the first eight months of 2019, sales reached 6,489 units, up 3.2% from the 6,288 units transacted over the same period in 2018. Colliers expects the total new home sales for the whole of 2019 to surpass the 8,795 units transacted last year.
“Home buyers continue to be value-conscious and selective, favouring projects that are near key transport nodes. We believe the underlying demand for homes remains intact and will support a sustainable residential property market in Singapore,” observes Colliers’ Song.
For price trends, recent transactions, other project info, check out these projects' research page: Piermont Grand, Parc Clematis, The Florence Residences, Treasure at Tampines, Parc Botannia, Parc Esta
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