New private home sales up 18.9% in November

December 16, 2020

The increase in private home sales comes on the back of new project launches by developers, with The Linq @ Beauty World emerging as the best-selling development for November.

New private home sales in Singapore rose 18.9% month-on-month to 767 units in November (excluding executive condominiums (ECs)), on the back of new project launches by developers.

On an annual basis, new home sales declined 34.2% from the 1,165 units sold in November 2019.

Knight Frank Singapore’s Head of Research Leonard Tay noted that last month’s developer sales were not as high as the 1,000-plus units sold in July, August and September since pent-up demand has already been unleashed when the city-state exited the circuit breaker period.

“While this pent-up demand has now dissipated to some extent in October and November, it nevertheless appears that homebuyers are adapting to the directive by Urban Redevelopment Authority (URA) restricting the re-issuance of the Option to Purchase (OTP),” he said. 

Lee Sze Teck, Research Director at Huttons Asia, said November’s sales figures showed that many buyers do not need an extension of their option to buy.

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“This is a testament of the depth of the market. Hence any impact of the policy change on sales is limited.” 

Majority of the transactions last month were concentrated in the Rest of Central Region (RCR) which saw 447 units sold. The Outside Central Region (OCR) sold 236 units, while the Core Central Region (CCR) transacted 84 units.

The Linq @ Beauty World emerged as the best-selling development for November, followed by The Landmark, The Garden Residences, Treasure at Tampines and Urban Treasures.

PropNex CEO Ismail Gafoor said November’s developers’ sales “once again demonstrated the strong correlation between transaction volume and new project launches during the month”. 

The Linq @ Beauty World and The Landmark – the two new project launches in November – accounted for about 30% of last month’s sales.

But while new project launches have boosted home sale last month, previously launched projects also continued to move units “at a steady pace”, said Wong Siew Ying, Head of Research and Content at PropNex. 

Suggested read: 19 New Launch Condos and ECs in 2021: Which to Buy?

“About 70% (or 540 units) of November’s sales were from projects that were already on the market,” she said. 

“Buyers likely took time to evaluate prices of various developments and returned to pick up properties in projects that they felt offered them the best value for their budget.” 

Moving forward, Gafoor is “cautiously optimistic of the property market outlook and anticipate that sentiment should remain positive to the extent that COVID-19 remains under control and that the Singapore economy continues to improve”.

“With two new projects out in December – Ki Residences and Clavon which have respectively sold 143 and 442 units during their launch – we expect new home sales to cross the 1,000-unit mark this month,” he said.

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