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More new private condos from the existing launches were put up for sale by developers in Singapore last month, but they didn’t sell as many units because of the Chinese New Year lull and the lack of big new projects to launch.
A rise in interest rates, a rise in Covid-19 cases after the festivities, and a rise in geopolitical tensions from the Russia-Ukraine war also made people less happy, analysts said.
New data from the Urban Redevelopment Authority shows that only 527 private residential units were sold in February, down almost 23% from 680 in January and 18.3% less than 645 a year ago, reports the CBC (March 15).
There haven’t been this many new home sales in a month since May 2020, when 487 were sold.
Lack of New Project Launching in February 2022
One new development, Royal Hallmark at Haig Lane, was the only one. It sold 10 units in february for $1,905 per square foot (psf).
People who build homes are more cautious now because of a “substantial rise in ABSD (additional buyer’s stamp duty) rates and a tightening of the total debt service ratio (TDSR), which make it more difficult to assess demand and set prices before launching projects.”
Almost 9% more houses were built last month than in January, and 16.2% more than a year ago.
Private home sales fell 23.6 percent, to 559 units, from 732 units in January. Including executive condominiums (EC), new home sales were down to 559 units from 732 units in January.
ERA Realty’s head, Nicholas Mak, says that even though interest rates are going up and Ukraine is in turmoil, a strong Housing Board resale market could keep private home sales going.
Property Launches from 2nd Quarter 2022
Tricia Song, the head of research for CBRE in South East Asia, said that in particular, North Gaia is expected to do well because of demand from people who want to move up and people who want to buy their first home.
Short-term, safe-haven flows could also help the residential market, she said.
Head of research and content at PropNex Realty, Wong Siew Ying, said that foreigners bought 4.9 percent of new private homes (excluding ECs) in February, up from 4.3 percent in January. This figure is the same as in January.
Buyers from outside the United States bought 26 homes in February, up from 22 in December, the woman said.
Most of the units sold in February were bought by Singaporeans. Permanent residents bought 15.6% of them, and they made up the rest of the sales.
Based on their price, the most common range for new private homes sold last month was between $1.5 million and $2 million. This group made up 36% of the sales.
She said: “Then came the $1 million to $1.5 million range, which had 23.9 percent of buyers.” Affordability was still a big reason people wanted to buy homes.
At the Royal Hallmark at Haig Lane, 10 units sold last month for an average price of $1,905 per square foot. This is the average price for the 32-unit building (psf). In this picture, you can see how people live in their homes
Transactions expected to drop in 2022
When you don’t include ECs, sales in the city fringe area made up about 50 percent of all new sales. The suburbs came in second with 30.4 percent, and the prime districts came in third with 17.6 percent (19.2 per cent).
A senior vice-president at OrangeTee & Tie says that the number of new home launches is expected to drop another 20% this year, to around 9,000 units (including ECs). This means that the supply crisis could get even worse this year, she says.
During the first half of this year, more land sites will be released for sale from the Government Land Sales program. But the new homes won’t be on the market until next year, she said.”