Singapore saw residential sales volume increase 4.4 percent quarter-on-quarter to 4,153 units in Q3 2015 compared to the 29.9 percent quarter-on-quarter decline seen over the same period last year, revealed a DTZ report.
“This was the highest recorded volume in the year, most of which was buoyed by the primary market,” said the report.
Primary sales transacted climbed 13.9 percent quarter-on-quarter to 2,410 units. The growth in take-up rate is due to the narrowing gap between buyers’ and developers’ price expectations.
Notably, Singaporeans accounted for 78 percent of the residential property buyers in Q3 2015.
“The last time the proportion of Singaporean home purchases reached 78 percent was in Q2 2013, prior to the announcement of the TDSR,” said DTZ.
In absolute terms, the number of Singaporean private home purchases rose 4.1 percent quarter-on-quarter to 3,023 units.
Meanwhile, non-Singaporeans acquired 1,050 units in Q3 2015, or 19 home purchases more than that in Q2 2015, as buyers remain confident of the city-state’s economic and political stability.
Despite their weakening exchange rates to Singapore dollar, Malaysian and Mainland Chinese home buyers remained the top two nationalities among non-Singaporean buyers. Malaysian buyers snapped up 275 homes in Q3 2015, while Mainland Chinese bought 255 private homes.
The report noted that buying activity from these nationalities were highest in the prime districts, as well as districts 19 and 28.
Despite the increase in overall sales, purchasers with HDB addresses fell 12 percent quarter-on-quarter to 1,509 units in Q3 2015.
On a yearly basis, however, the number of buyers with HDB addresses jumped 20.5 percent, of which almost 50 percent were investors.
According to DTZ, buyers with HDB addresses were also drawn to attractively priced private developments such as High Park Residences, Kingsford Waterbay and Botanique at Bartley.
Looking ahead, DTZ expects demand to be mixed in Q4 2015 as buyers continue to seek projects in choice locations. “More launches are expected in October to November, but sales activity may be subdued with the December festivities,” it said.
In 2016, DTZ expects demand “to be weighed down by the likely marginal increase in the Federal interest rates in December, and weakened sentiments of the market.”