New home sales rise 18.5% y-o-y in February as buyers defy seasonal lull

/ EdgeProp
March 15, 2019 6:43 PM SGT
Developers sold 455 new units out of 596 units (excluding executive condos or ECs) that were launched for sale in February, according to the latest statistics from the URA. The number of units sold is a 5.1% increase compared to the month before, according to Lee Sze Teck, head of research for Huttons Asia.
The new private home sales in February (excluding ECs) were 18.5% higher y-o-y, despite an uncertain economic outlook and property cooling measures, says Christine Sun, head of research and consultancy at OrangeTee & Tie.
February had been expected to be a relatively quiet month for launches and sales amid Lunar New Year festivities. “No new projects launched for sale in February 2019, similar to February 2018,” says Lee.
Sun says sales in February could have improved on the back of the January announcement of the upcoming Cross-Island MRT Line, which could have enhanced the attractiveness and investment potential of some new developments.
Source: LTA, Onemap, EdgeProp Singapore
This “catalytic news” caused a surge in demand from buyers that continued to spill over into February, says Lee. Thus, some developers continued to release units from earlier launched projects to satisfy demand from buyers.
According to Desmond Sim, CBRE’s head of research for Singapore and Southeast Asia, the February new home sales figures bring the combined numbers for January and February to 891 units sold and 1,094 units launched. These compare to 911 units sold and 454 units launched over the same period last year, when sentiments were stronger.
The latest statistics show a pick-up in sales last month in already-launched new developments including Affinity at Serangoon (88 units sold), Riverfront Residences (49 units), The Tre Ver (48 units), The Garden Residences (19 units), Stirling Residences (31 units), and Parc Botannia (28 units).
Notably, sales at other existing new developments have plateaued, with...