New private home sales surged 104.9% in June to 998 units: URA

This is the highest sale in seven years as recovery gathers pace.

New home sales surged 104.9%, excluding executive condominiums (EC), to 998 units in June from 487 units in May, according to the developers' monthly sales data by Urban Redevelopment Authority (URA). Including executive condominiums (EC), sales jumped 102.2% to 1,031 units over the same period.

This is said to be the highest in seven years as the private residential market recovers at a faster pace, after posting a surprise rebound in the preceding month.

OrangeTee & Tie's head of research & consultancy Christine Sun notes that last month’s sales volume increase was broad-based across all market segments.

The number of new homes excluding ECs transacted in Rest of Central Region (RCR) rose 127.5% MoM to 430 units in June, whilst those in Outside Central Region (OCR) increased 90.3% to 489 units and those in Core Central Region (CCR) skyrocketed 92.7% to 79 units over the same period.

The best-selling projects were Treasure at Tampines (104 units), Parc Clematis (90 units), The Florence Residences (89 units), Parc Esta (82 units), Stirling Residences (74 units), Jadescape (56 units), and The Tapestry (41 units).

Further, Kopar at Newton remained as the top-selling project in CCR with 25 transactions, whilst other luxury projects like Royalgreen, Fourth Avenue Residences, Leedon Green, Van Holland, Boulevard 88, and The Avenir continued to move units despite the pandemic.

Sun adds that sales picked up further after showflats were allowed to reopen after the circuit breaker period. According to URA realis data, the number of private homes excluding ECs transacting at $2m and above rose to 129 units in June from 23 units in May.

Huttons Asia research director Lee Sze Teck estimates up to 20 new launches or around 6,000 units in H2, with Cairnhill 16 first to hit the road on 17 July, and the market may see sales of between 8,000 and 8,500 units in 2020.

“Economists agreed that the worst is over and recovery is on the cards. The resilience in the market and property as an endearing asset class among investors will drive sales in the market,” he added.

Meanwhile, in terms of proportion to the total sales (excluding ECs), 13% of new homes were transacted at $2m and above in June, when compared to 5% in May. Further, 32 private homes were transacted at $3m and above whilst 2 new homes were sold above $10m including a 257 sqm 5th floor unit at Boulevard 88, and a 504 sqm 12th floor unit at 15 Holland Hill.

Foreign buyers returned to the market after the Circuit Breaker period, according to Sun as URA realis data revealed that the number of non-landed homes bought by foreign buyers increased substantially last month.

Non-permanent residents (NPR) bought 49 non-landed private homes in June, a steep increase from the 14 units transacted in May and higher than the 33 units transacted in June 2019. The number of non-landed homes bought by Singapore permanent residents (PR) has also surged to 120 units in June from 56 units in May, higher than the 86 units sold in June last year.

“Many foreigners have bought properties last month as the growing macro-economic uncertainties have driven more overseas investors to seek shelter for safe-haven assets here,” said Sun. Although showflats were reopened last month, more foreign buyers purchasing private homes remotely were observed in contrast to the past where many foreigners typically buy a unit only after visiting a showflat.

Sun added that currently, many foreigners snapped up homes in Singapore based on their trust in the legal system, quality of finishes, and investment potential of properties. More foreigners are expected to pick up private homes in the coming months, as the interest rates are expected to remain low and ample liquidity is flowing into the asset markets due to the massive quantitative easing programmes launched around the world.