Private new home sales double in June on pent-up demand

By Charlene Chin
/ EdgeProp Singapore |
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SINGAPORE (EDGEPROP) - Home buyers acquired 998 private new homes in Singapore in June, a rise of 104.9% m-o-m, according to URA data.
The rebound in the market, reflecting pent-up demand from the “circuit breaker” measures, also marks a 21.6% y-o-y rise. The sales are the highest in seven years, since June 2013, which saw 1,806 private homes sold.
The best-selling projects in June were Treasure at Tampines (104 units), Parc Clematis (90 units), and The Florence Residences (89 units).
The rise in June’s sales volume was across all market segments - the Core Central Region (CCR), Rest of Central Region (RCR), and Outside Central Region (OCR), notes Christine Sun, head of research & consultancy at OrangeTee & Tie. In June, new homes sold in the RCR rose 127.5% m-o-m to 430 units, those in OCR increased 90.3 per cent to 489 units, while homes sold in the CCR rose 92.7% to 79 units.
After the reopening of showflats on June 19, there has also been a substantial increase in prices of private homes sold in June, Sun observes. Based on URA data as at July 15, the number of private homes that transacted at $2 million and above rose from 23 units in May to 129 units in June. Meanwhile, 32 private homes were sold at $3 million and above in June, compared to eight in May.
Properties that transacted above $10 million in June included a 2,766 sq ft unit on the fifth floor of Boulevard 88 that changed hands for $10.2 million ($3,680 psf), as well as a unit at 15 Holland Hill, spanning 5,425 sq ft on the 12th floor, that sold for $15 million ($2,765 psf).
As Singapore entered Phase Two of its reopening, foreign buyers gradually returned to the market, highlights Sun. The number of non-landed homes bought by foreign buyers increased in June: 49 non-landed private homes were purchased in June, a steep increase from the 14 units transacted in May, and the seven units sold in April. This is also higher than the 33 units transacted in June 2019.
“Many foreigners have bought properties last month as the growing macro-economic uncertainties have driven more overseas investors to seek shelter for safe-haven assets here,” says Sun.
“Although showflats were reopened last month, we have observed more foreign buyers purchasing private homes remotely due to the border lockdowns or travel restrictions imposed in many countries”, which is a stark contrast to the past where many foreigners would only buy a unit only after visiting a showflat, she says.
The number of non-landed homes purchased by Singapore permanent residents have also increased, to 120 units in June from 56 units in May.
Overall, developers have sold a total of 1,763 private new homes in 2Q2020, bringing new home sales to 3,911 units in 1H2020, a 7% y-o-y decline.
The number of ECs sold in June also increased m-o-m, at 33 units, compared to 23 ECs sold in May.
The only new condo launch in June was Parkwood Residences, which sold one unit at the median price of $1,323 psf.
Although the rebound in sales for June has been encouraging, property consultants believe new home sales will slow as the country enters a recession. The Singapore economy contracted 41.2% q-o-q in the April to June period, according to the Ministry of Trade and Industry’s advance estimates on July 14.
Real estate consultants estimate that total new home sales for the whole year would hover between 6,000 and 7,000 units, down from 9,912 transactions in 2019.
For price trends, recent transactions, other project info, check out these projects' research page: Parkwood Residences, 15 Holland Hill, Treasure at Tampines, Parc Clematis, The Florence Residences
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