Logo of Phnom Penh Post newspaper Phnom Penh Post - Singapore new private home sales drop to lowest since May 2020



Singapore new private home sales drop to lowest since May 2020

Content image - Phnom Penh Post
Including executive condominiums (EC), new private home sales in Singapore fell 23.6 per cent to 559 units from 732 units in January. THE STRAITS TIMES

Singapore new private home sales drop to lowest since May 2020

Developers in Singapore put on sale more new private homes from existing projects last month but sold fewer units due to the typical Lunar New Year (LNY) lull and the absence of major new launches.

Sentiment was also dampened by the prospect of rising interest rates, a surge in Covid-19 cases following the festivities and heightened geopolitical tensions from the Russia-Ukraine war, analysts said.

Buyers took up 527 private residential units, down nearly 23 per cent from 680 in January and 18.3 per cent lower than 645 a year ago, according to Urban Redevelopment Authority (URA) data released on March 15.

This is the lowest monthly new home sales since 487 units were sold in May 2020.

There was only one new launch – the 32-unit Royal Hallmark in Haig Lane – which sold 10 units last month at a median price of S$1,905 per square foot (US$15,050 per sqm).

JLL senior director of research and consultancy Ong Teck Hui attributed developers’ cautious mood following the latest cooling measures to a “substantial increase in ABSD [additional buyer’s stamp duty] rates and tightening of the total debt service ratio [TDSR], which make it harder to assess demand and decide on pricing before launching projects”.

Developers rolled out 194 new homes last month, up nearly nine per cent from 178 in January and 16.2 per cent higher than 167 a year earlier.

Including executive condominiums (EC), new private home sales fell 23.6 per cent, to 559 units, from 732 units in January.

Despite headwinds from rising interest rates and the Ukraine turmoil, a robust Housing Board resale market could continue to support private housing sales, ERA Realty’s head of research and consultancy Nicholas Mak said.

Upcoming new projects in the second quarter include Qingjian Realty’s The Arden in Phoenix Road, Bukit Sembawang’s Liv @ MB (former Katong Park Towers), Sing Holdings’ EC North Gaia in Yishun and City Developments and MCL Land’s Piccadilly Grand in Northumberland Road.

CBRE’s Southeast Asia research head Tricia Song said that, in particular, North Gaia is expected to perform strongly due to demand from upgraders and first-time home buyers, who are largely unaffected by the increase in ABSD rates.

In the short term, the residential market could also benefit from safe haven flows amid heightened geopolitical uncertainty, she added.

Wong Siew Ying, head of research and content at PropNex Realty, noted that the proportion of new private homes (excluding ECs) bought by foreigners remained stable at 4.9 per cent of overall sales in February, up from 4.3 per cent in January.

Home purchases by foreigners rose to 26 units in February from 22 in December last year, she added.

Singaporeans accounted for 79.3 per cent of February’s sales, while permanent residents took up 15.6 per cent of units sold during the month.

Based on price quantum, the largest proportion of new private homes sold were in the S$1.5-2 million (US$1.10-1.47 million) range, which made up 36 per cent of last month’s sales.

Song said: “This was followed by the S$1-1.5 million bracket, at 23.9 per cent, as affordability remained a key demand driver.”

Excluding ECs, the city fringe area accounted for a little over 50 per cent of total new sales, followed by the suburbs (30.4 per cent) and the prime districts (19.2 per cent).

Last month’s top sellers were from existing projects Normanton Park, Dairy Farm Residences, Avenue South Residence, The Florence Residences, One Pearl Bank and Fourth Avenue Residences.

The supply crunch could worsen this year as the number of new home launches is expected to drop by another 20 per cent to around 9,000 units (including ECs), said Christine Sun, OrangeTee & Tie senior vice-president of research and analytics.

“While more land parcels will be released from the Government Land Sales programme in the first half of this year, the new homes will only enter the market next year,” she added.

THE STRAITS TIMES (SINGAPORE)/ASIA NEWS NETWORK

MOST VIEWED

  • ‘Education’ a priority traffic-law penalty

    A top National Police official on June 21 neither rejected nor confirmed the authenticity of a leaked audio message, which has gone viral on social media, on a waiver of fines for a number of road traffic-related offences. General Him Yan, deputy National Police chief in

  • Pursat Ford assembly plant opens

    The Kingdom’s first Ford assembly plant was inaugurated on June 16 in Pursat province amid rising demand for brand-new vehicles among Cambodians. The facility is seen as a game changer for the domestic automobile industry, which could bring a wave of investors seeking to cash

  • Siem Reap’s $18M zoo said to educate public, help wildlife

    Angkor Wildlife and Aquarium Co Ltd has invested $18 million in a zoo in Siem Reap province, which will be opened in October to educate and promote animal conservation as well as attract national and international tourists. Currently, the Angkor Wildlife and Aquarium is building the

  • Volunteer scheme to foster ‘virtuous’ humanitarian spirit

    A senior education official said volunteer work contributes to solidarity and promotes a virtuous humanitarian spirit among the youth and communities. Serei Chumneas, undersecretary of state at the Ministry of Education, Youth and Sport, made the comment during the opening of a training programme called “

  • $50B infrastructure plan en route

    The government’s upcoming $50 billion,10-year infrastructure master plan will provide tremendous investment opportunities for domestic and foreign entities, transport experts and economists say. Minister of Public Works and Transport Sun Chanthol revealed the plan to Japanese ambassador to Cambodia Masahiro Mikami on June 15. At

  • Chinese firms unveil preliminary results on metro, monorail for capital

    Minister of Public Works and Transport Sun Chanthol and representatives from China Road and Bridge Corp (CRBC) and its parent company, the state-owned China Communications Construction Co Ltd (CCCC), met on June 24 for talks on results of the firms’ preliminary study on a potential metro