SINGAPORE (EDGEPROP) - Developers sold 975 private new homes in Singapore, a 57% m-o-m increase from 620 units in January, according to monthly sales data of developers compiled by URA.
Of the total units sold — which excludes Executive Condominiums (ECs) — the bulk of sales volume was contributed by The M in the CCR, which saw 380 units sold at a median price of $2,439 psf.
JLL attributes the popularity of the project to its “fairly prime location”, with close proximity to Bugis MRT station and popular malls like Bugis Junction, Bugis+ and Suntec City. Another reason, it states, is due to The M’s small unit sizes, which kept price quantum affordable to mass buyers - about 76% of the 380 units sold were transacted at below $1.5 million with unit size ranging from 38 sqm (409 sq ft) to 62 sqm.
The second most popular project was Treasure at Tampines, in the OCR, with 97 units sold at a median price of $1,379 psf. This is followed by Parc Esta, in the RCR, which sold 53 units at a median price of $1,686 psf.
Previously launched projects also contributed to sales volume. Jadescape sold 46 units at a median price of $1,707 psf, while Parc Botannia saw 40 units sold at a median price of $1,376 psf.
Ong Teck Hui, senior director of research & consultancy at JLL, commented that the sales volume achieved in February was not surprising, as “the month after Lunar New Year typically posts much higher sales, as experienced in previous years”.
The three new projects put on the market in February were The M, Verticus and Dalvey Haus. The 162-unit Verticus sold 13 out of 20 units launched at a median price of $1,999 psf. Meanwhile Dalvey Haus, comprising 27 units, sold only one, at $3,228 psf.
Despite concerns of Covid-19, JLL’s Ong observed that buyers were still prepared to commit to purchases.
Ismail Gafoor, chief executive officer of PropNex Realty, notes that the private new home sales segment continues to be in strong demand.
In the EC segment, Parc Canberra was the only new launch in February 2020, with 320 units sold in the month.
To date, the number of private new homes launched in 2020 stand at 1,595 units. Property consultants expect total sales for the year to range between 7,000 to 10,000 units, despite a challenging start to the year - the impact of Covid-19 and the plunge in oil prices.
Additionally, Wong Xian Yang, senior manager, research, Singapore and Southeast Asia, observes that the Fed rate cut to nearly zero would lower borrowing costs, which could entice some buyers to enter the market.
Parc Canberra was the only new EC launch in February 2020, with 320 units sold in the month (Credit: Albert Chua/ The Edge Singapore)
However, Wong expects that demand could be capped by current loan curbs, such as the Total Debt Servicing Ratio Framework (TDSR). Interest rates are already relatively low, and buyers already enjoy lower initial mortgage instalments for new launches due to the progressive payment schedule for uncompleted properties, Wong notes.
“Most launches are expected to go on as scheduled in 2020 as the majority of developers have already secured a Temporary Occupation License site for their projects,” says Desmond Sim, head of research, Southeast Asia, CBRE.
However, Sim cautions that “affordability in terms of overall quantum continues to be the driver of demand”. He explains: “Buyers out there continue to be more discerning where location and developer’s reputation will swing their choices,” emphasising that “affordability remains key for both EC and non-EC markets”.
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