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New home sales continued to rise for a third straight month amid a worsening economic outlook, with developers selling 1,080 non-landed private homes last month, up 8.2 per cent from June. This is up from a near six-year low during the circuit breaker period in April, but sales were down 8.4 per cent from 1,179 a year ago.
There were 869 private homes launched in July, up nearly 46 per cent from 597 in June, but down 4.6 per cent from 911 a year ago.
Last month's take-up was led by projects in the suburban sub-market (outside central region) with 548 sales, followed by 419 units sold in the city fringes or rest of central region, and 113 in the prime districts or core central region.
There were 869 private homes launched in July, up nearly 46 per cent from 597 in June, but down 4.6 per cent from 911 a year ago.
Last month's take-up was led by projects in the suburban sub-market (outside central region) with 548 sales, followed by 419 units sold in the city fringes or rest of central region, and 113 in the prime districts or core central region.
Treasure at Tampines condo project sold the most in July for outside central region with 548 sales, followed by 419 units sold in the city fringes or rest of central region, and 113 in the prime districts or core central region.
Figures show that the bulk of the units sold were from earlier launches, which accounted for 68 per cent of July's total sales. Data released by the Urban Redevelopment Authority (URA) yesterday, excluded executive condominium (EC) units, a public-private housing hybrid. Including EC units, 1,142 new non-landed homes were taken up last month, up nearly 11 per cent from June, but down about 27 per cent from 1,557 a year ago, the URA data showed.
Ms Wong Siew Ying, head of research at PropNex, noted that while the relatively brisk sales in recent months may seem at odds with the gloomy economic prognosis, the current downturn is not felt evenly across all sectors of the economy. "Some sectors - such as financial services and tech - have held up better than others, and (those who) feel more secure about their job prospects or have built up substantial savings may see this as an opportune time to enter the market."
Kiwi Lim from Huttons Asia felt that the absence of new launches last month shows caution among some developers. He believe that developers may delay their launches till next year when Covid vaccines are expected to be ready by laboratories across the world.
"Developers also need more time to recalibrate their pricing strategies as well as to (implement) safe management measures, especially for larger-scale projects," said Mr Ong Teck Hui, senior director of research and consultancy at JLL.
Ms Wong Siew Ying, head of research at PropNex, noted that while the relatively brisk sales in recent months may seem at odds with the gloomy economic prognosis, the current downturn is not felt evenly across all sectors of the economy. "Some sectors - such as financial services and tech - have held up better than others, and (those who) feel more secure about their job prospects or have built up substantial savings may see this as an opportune time to enter the market."
Kiwi Lim from Huttons Asia felt that the absence of new launches last month shows caution among some developers. He believe that developers may delay their launches till next year when Covid vaccines are expected to be ready by laboratories across the world.
"Developers also need more time to recalibrate their pricing strategies as well as to (implement) safe management measures, especially for larger-scale projects," said Mr Ong Teck Hui, senior director of research and consultancy at JLL.
Parc Clematis (former Park West) located at Clementi Ave 6 in the Clementi Estate right next to Nan Hua Primary School saw the 2nd highest sales for condo projects due to its proximity to amenities in a matured estate.
Interest in pricier units has picked up, analysts say. This is despite Singapore suffering a deeper recession in the second quarter than expected, with the economy contracting 13.2 per cent year on year, sharper than a 12.6 per cent plunge earlier estimated and the worst on record, the Ministry of Trade and Industry said last week.
URA Realis data showed 147 deals transacted at more than $2 million each in July compared with 118 such deals in June, said CBRE's head of research for South-east Asia Desmond Sim. "There were also some large quantum deals of more than $5 million in luxury projects such as 15 Holland Hill last month."
Upcoming launches include Penrose in Sims Drive and The Landmark in Chin Swee Road.
URA Realis data showed 147 deals transacted at more than $2 million each in July compared with 118 such deals in June, said CBRE's head of research for South-east Asia Desmond Sim. "There were also some large quantum deals of more than $5 million in luxury projects such as 15 Holland Hill last month."
Upcoming launches include Penrose in Sims Drive and The Landmark in Chin Swee Road.
Only one new launch condo for the month of July, freehold Forett at Bukit Timah is the only new launch, selling 172 units at a median price of $1,931 psf. Its attractive location & affordable freehold pricing appeals to buyers.
So far this month, freehold Forett at Bukit Timah is the only new launch, selling 172 units at a median price of $1,931 psf, JLL said.
Disputing talk of discounts, Mr Wong Xian Yang, Cushman & Wakefield's associate director of research for Singapore and South-east Asia, said median prices of the top five selling projects in July were similar to or even higher compared with those from the time of their launch to July.
For instance, the median price for The Florence Residences from the time of its launch to July was $1,471 per sq ft (psf), but it rose to $1,559 psf in July, he pointed out.
Upcoming launches include Penrose in Sims Drive and The Landmark in Chin Swee Road.
Disputing talk of discounts, Mr Wong Xian Yang, Cushman & Wakefield's associate director of research for Singapore and South-east Asia, said median prices of the top five selling projects in July were similar to or even higher compared with those from the time of their launch to July.
For instance, the median price for The Florence Residences from the time of its launch to July was $1,471 per sq ft (psf), but it rose to $1,559 psf in July, he pointed out.
Upcoming launches include Penrose in Sims Drive and The Landmark in Chin Swee Road.
Sourced from Straits Times News Article on 18 August 2020
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