Artist’s impression of Mayfair Gardens, a high-end condo in Bukit Timah.
The recovery of private home sales in September could be due to more developments being launched that may have spurred demand, according to a new report from OrangeTee & Tie.
Some major launches include JadeScape, Mayfair Gardens, The Jovell and Jui Residences. Altogether these four accounted for 51.6 percent, or 481 units of September’s private new home sales, and are among the best-selling projects last month.
“We have also observed healthy sales at some existing launches like The Tapestry, Affinity at Serangoon, The Tre Ver and Riverfront Residences as buyers may have decided to proceed with their purchases after making market comparison,” said the property consultancy’s research head Christine Sun.
Previously, new private home sales in Singapore declined sharply by 64.3 percent month-on-month to 617 units in August compared to 1,724 units back in July. The figure also translates to an annual drop of about 50 percent.
But by September, new private home sales rebounded by 51 percent on a monthly basis to 932 units. The figure also represents an annual growth of around 42 percent.
“Some buyers may have switched their buying interest to new home sales as prices of resale homes are holding firm. Individual resellers may have been reluctant to drop prices as the economy and job market is still healthy,” she noted.
Moreover, some property experts think that the substantial increase in new launches may indicate a recovery in the private housing market.
“The 1,169 private homes launched in September is the highest number of monthly launches in 2018, not counting the 2,239 launched in July, which was a distortion due to the hasty launches on 5 July to beat the cooling measures,” said JLL national director of research & consultancy Ong Teck Hui.
Looking ahead, OrangeTee & Tie expects new private home sales to hit 8,500 to 9,500 units for the whole of 2018.
“As the return in demand is underpinned by strong economic fundamentals, we foresee that buying activities will pick up further as more launches are on the cards, including The Woodleigh Residences, Parc Esta, Kent Ridge Hill Residences and Whistler Gran that are slated to be launched over the next two months,” said Sun.
Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories, email firstname.lastname@example.org