Private home sales drop 27% in October

Victor Kang18 Nov 2019

However, the sales figures still show an 84.9% increase compared to a year ago.

New private home sales in Singapore fell 27% in October from September, reported Channel News Asia, based on the data released by the Urban Redevelopment Authority (URA).

According to URA data, developers only sold 928 units in October (955 units including executive condominiums), compared to 1,270 units from the previous month.

However, on a year-to-year comparison, the figures show an 84.9% increase.

The new homes sold in October in the Core Central Region (CCR) tripled to 182 units from September, the biggest recorded since March 2016, with Singaporeans buying 133 of those units.

Analysts said the good performance was mainly due to new project launches in the area, including Midtown Bay Residences, Neu at Novena and Royalgreen. The other new launch this month was Midwood, within the Outside of Central Region (OCR).

READ: Guocoland’s Midtown Bay Condo: 5 Key Points Of Interest

The deficiency in major launches in the city fringe and mass-market segments like the OCR could have been a factor in the sales drop, said OrangeTee and Tie head of research and consultancy Christine Sun.

“Sales volumes tend to be lower when more luxury projects are being launched in a particular month, owing to the higher price tags and lower affordability,” she said.

URA Realis data show that this year saw 104 non-landed new homes sales reach S$5 million and above, which is the highest mark since 155 were purchased from January to October 2011, added Sun.

High-profile transactions, such as James Dyson’s purchase of Singapore’s most expensive apartment, contributed to “significant positive sentiments for developer sales,” said property analyst Ong Kah Seng.

“Despite the global trade and geopolitical uncertainties, we believe demand for Singapore private homes is still relatively stable given the tight labour market, favourable interest rate environment, and relatively healthy household balance sheet,” said Tricia Song, Colliers International head of research for Singapore.

Ong believes the country’s properties will become more attractive for foreign buyers wanting stable investments.

“There’s increasing international attractiveness of Singapore residential properties as offering longer term stability to all profiles of buyers, including from foreigners who are eschewing investments in Hong Kong due to that city’s heightening social turbulence,” he noted.

Looking for a property in Singapore? Visit PropertyGuru’s ListingsProject Reviews and Guides.

 

Victor Kang, Digital Content Specialist at PropertyGuru, edited this story. To contact him about this or other stories, email victorkang@propertyguru.com.sg

POST COMMENT

You may also like these articles

Non-landed private resale home transactions drop 1.5% in September

OrangeTee & Tie said the decline in volumes was a recurring seasonal pattern observed over the previous years. Transaction volumes for non-landed private resale homes dropped for the second conse

Continue Reading9 Oct 2019

New home sales hit a 14-month high in September

Developers sold 1,270 private homes in September, driven by several new launches, including Avenue South Residence, which sold 361 units.    With developers revving up launches following the Hungry

Continue Reading16 Oct 2019

New condominium sales rose 49.2% QoQ in Q3 2019

Despite a dip in new project launches, more units put up for sale compared to Q3 2018. New condominium sales grew 49.2% quarter-on-quarter (QoQ) or 16.9% year-on-year (YoY) to 3,198 units, compared t

Continue Reading15 Nov 2019