Private new home sales in July increased by 43.5% m-o-m to 1,178 units in July, according to developers’ monthly sales data by URA. This figure excludes executive condos (ECs).
Including ECs, developers sold 1,556 units in July, reflecting an 89.3% m-o-m leap in new home sales.
“[July’s new home sales performance], coming on the back of a string of negative economic indicators amid rising trade tensions, is a testament to the strong underlying demand for new homes,” comments Tay Huey Ying, head of research and consultancy at JLL.
The bulk of units moved in July were at Piermont Grand, which is the first EC launch after 15 months. Out of 820 units, 378 units, or 46% was sold at the median price of $1,107 psf. The sales are “a tad slower than expected”, remarks Tricia Song, head of research for Singapore, Colliers International. “This could be due to its record price point – its median price of $1,107 psf was an all-time high for newly launched ECs in Singapore.”
In contrast, Rivercove Residences, the 628-unit EC launched in April 2018, was sold 82% within the first month at a median price of $970 psf.
The new home sales in July is 31.7% lower y-o-y, when 1,724 units were sold in July 2018, as panic buyers flocked to showflats on July 5 last year to purchase homes before the higher additional buyer's stamp duty and loan-to-value rates took affect the next day.
There were five new launches (excluding ECs) in July: One Pearl Bank, View at Kismis, Haus on Handy, Dunearn 386 and Jervois Treasures. All these projects are in the Central Region: three projects are in the Central Core Region, while two are in the Rest of Central Region. The new launches make up 441 units launched in July, or 48.5% of the private residential units launched (excluding ECs), observes ERA Realty Network.
Credit: OrangeTee & Tie Research & Consultancy
One Pearl Bank was the top seller of the month, with 197 units transacted at a median price of $2,353 psf. “Buyers were attracted to its location, which is just on the doorstep of the CBD, and its iconic design,” notes JLL.
Desmond Sim, head of research for Southeast Asia, CBRE, comments: “In light of higher psf prices, it was not surprising that the smaller units was the main driver – median unit size for those sold at One Pearl Bank was 570 sq ft.”
This is followed by Treasure at Tampines, with 119 units sold at a median price of $1,325 psf. The Florence Residences saw 112 units sold at a median price of $1,449 psf. Parc Botannia transacted 75 units at a median price of $1,308 psf, while freehold Sky Everton sold 67 units at a median price of $2,606 psf.
Foreign demand
Foreign buyers purchased 82 units, or 7.1% of non-landed new home sales in July, higher than the one-year average of 39 units, observes OrangeTee & Tie. This is however still below the highest record of purchases by foreigners at 274 units in December 2011.
Table: Number of non-landed new homes bought by foreign buyers
Foreigners have also bought pricier homes this year, says OrangeTee. For the first seven months of 2019, 27%, or 84 of the 311 non-landed new homes bought by foreigners were above $3 million. This is the highest percentage achieved since the 30.5% record in 2007, it notes.
“The growing global economic uncertainties may see more investors parking their funds here as Singapore’s property market is known to be a safe and stable haven for capital preservation and appreciation,” the firm adds.
Looking ahead
For the first seven months of 2019, sales of private homes have hit 5,366 units. Overall, property consultants are predicting total new home sales volume (excluding ECs) to range between 8,000 and 9,000 units for the full year.
Upcoming launches for August and September include the 1,468-unit mega project Parc Clematis, the 1,074-unit Avenue South Residences at Silat Avenue, the 219-unit Midtown Bay at Beach Road and the 460-unit Dairy Farm Residences at Dairy Farm Road.
New home sales are expected to dip in August, in view of the Chinese Hungry Ghost Festival, when souls of the dead are believed to roam about.