Residential sales up 20% in Q1: Huttons

Strong sales in January and February have more than offset the crash in March.

The overall residential scene still seems to be stable despite the economic weakness, as total sales jumped 20% YoY in Q1 from the same period in 2019, according to a Huttons report. So far, the report noted that property is proving to be an enduring asset class.

After the lull in December 2019, the residential volume in January rose 15.2% MoM and 43.2% YoY, recording its six-year high as developers launched 598 units and sold 620 units. Huttons noted that it could have been higher if not for the extended Lunar New Year break and limited new launches.

The three new launches in January are all in the Core Central Region (CCR)—Leedon Green, The Avenir and Van Holland.

February also showed more promising results as the volume of sold units surged 57.4% MoM and 114.5% YoY. The M in Bugis attracted buyers with its pricing and sold more than 70% during its weekend launch. It sold 976 units in February.

However, March came and showed muted sales as the volume of sold units crashed 32.3% MoM and 37.4% YoY. This is said to be the sixth consecutive month when sales volume has exceeded launch volume.

As for the resale market, prices in the resale market dipped 1.2% QoQ in Q1, whilst its volume crashed 20% QoQ.

The report added that sellers of completed homes in the mass market and landed segment most likely opt to accept lower profits in a bid to offload their property.

In addition, the executive condominium (EC) segment also gleamed in Q1, with Parc Canberra selling more than 60% of its units. Ola at Anchorvale Crescent also moved more than 30% or 170 units on its weekend launch.

Unfazed by fewer foreign buyers
Huttons stated that the percentage of foreigners buying properties (new and resale) in Singapore has eased by one percentage point, no thanks to the travel restrictions imposed by the Government in some countries.

“The local property market is still very much supported by Singaporeans and thus a small adjustment in foreigner buying is unlikely to have a significant impact on the market,” Huttons said.

It further revealed that purchases by foreigners above $2,000 psf went down the most in terms of volume in Q1, but this decline was countered by the number of Singaporeans buying similarly priced properties, suggesting that the slack can be picked up by local demand.