Pasir Ris 8 Central Greenway

Despite tighter Covid-19 limitations in the second half of last month, sales of new private houses rose in July, making it the second-highest monthly sales of the year.

According to statistics published by the Urban Redevelopment Authority (URA) on Monday, developers sold 1,589 apartments in July, an increase of 82.2 percent from 872 units in June (Aug 16).

This is the largest number of units sold since January, when 1,633 were sold.

 

Impact of Covid 19 Curb from Phase Two (Heightened Alert)

The increase occurred despite the fact that home viewings and visitor capacity at sales galleries were restricted when Singapore reverted to phase two (heightened alert) on July 22.

According to Ms Christine Sun, of OrangeTee & Tie, the tighter restrictions did not seem to have a major impact on market sentiments.

“Last month, sales increased across several projects as buyers flooded back into the private home market. Some people hurried to purchase apartments because they were afraid of being priced out of the market “She said.The URA statistics do not include executive condominium (EC) units, which are a mix of public and private housing.

Including ECs sold, developers moved 1,744 new houses last month, an increase of 81.3 percent over June and 52.3 percent over a year earlier.

Last month’s new private house sales increased 46.7% year on year from July 2020.

 

 

 

Strong Demand from OCR Market

ProjectZoneTenureAverage Transacted PSFUnits Sold in July% Sold to Date
Pasir Ris 8OCR99 years$1,62441886%
Normanton ParkRCR99 Years$1,82512556%
MidwoodOCR99 Years$1,6569162%
Sengkang Grand ResidencesOCR99 Years$1,7148980%
Parc ClematisOCR99 Years$1,6916186%
KI ResidencesOCR999 Years$1,8516168%
Treasure at TampinesOCR99 Years$1,3815993%
The AntaresRCR99 Years$1,8065678%
Parc Central ResidencesOCR99 Years$1,1685291%
The Florence ResidencesOCR99 Years$1,6455180%

New sales last month were boosted by Normanton Park, Pasir Ris 8, Ki Residences at Brookvale, Midwood, Sengkang Grand Residences, Parc Clematis, and Treasure at Tampines.

Due to high demand for private houses in the suburban area, the outer central region accounted for the majority, or 63.7 percent, of new home sales, excluding ECs, she said.

 

Strong Demand for Government Land Sales (GLS)

PropNex Realty CEO Ismail Gafoor said that the recent Government Land Sales (GLS) tender activity, in which Lentor Central and Ang Mo Kio Avenue 1 got top bids of $1,118 per square foot per plot ratio (psf ppr) and $1,204 psf ppr, respectively, likely catalyzed the high sales.

“The announcement of aggressive land prices made many people realize that future launch costs are going to increase much higher. A significant number of investors and purchasers who had been waiting for the appropriate time chose to join the market in July in expectation of future price increases “He said.

Meanwhile, according to statistics from the URA’s developer survey, developers launched 1,104 apartments in July. This was a 35.5 percent rise over June and a 27 percent increase over a year earlier.

The lone residential property inaugurated this month was Pasir Ris 8, which is located close the Pasir Ris MRT station. There were no new ECs introduced.

 

Strong Demand from Local Singaporeans

Singaporeans purchased more in July, according to Huttons Asia chief executive Mark Yip, at 86.3 percent, compared to 81.8 percent in June.

“This is most likely owing to the introduction of Pasir Ris 8, which is situated outside of the core area, where the demand is mostly from HDB upgraders. More than 6,000 apartments in Pasir Ris and Tampines built between 2014 and 2016 have fulfilled the five-year minimum occupancy term, allowing (the owners) to renovate “He continued.

In July, almost half of the deals were priced under $1.5 million, nearly 30% were priced between $1.5 million and $2 million, and 21.5 percent were priced above $2 million. According to Huttons, the average price paid for a unit in July was $1.7 million.

Mr Yip believes that developers would press forward with their launches to capitalize on the good momentum, despite the fact that August is the seventh month of the lunar calendar, commonly known as the Hungry Ghost month.

“August is expected to be another month in which developers’ sales exceed 1000 units. This will reduce the market’s unsold supply to further lower levels, laying the groundwork for continued price rise in the months ahead.”

 

Upcoming Launches for 2nd Half of 2021

Canninghill Piers

The 448-unit The Watergardens in Canberra, the 138-unit Klimt Cairnhill, and the 697-unit Canninghill Piers are among the upcoming developments.

According to Mr Wong Xian Yang, director of research for Singapore at Cushman & Wakefield, underlying demand is expected to continue strong as financing rates remain low.

“Barring additional cooling measures,” he said, “total new private house sales are on track to surpass 11,000 units (excluding ECs) by the end of 2021, securing the greatest annual new sales number since 2013, when there were 14,948 new sales.”

“Total new sales might have been greater if not for decreasing unsold inventories and (Covid-19) limitations, which have caused several releases to be delayed.”