Sales of the latest private residential homes in Singapore increases to 42 per cent in the month of September alone while developers were jumping back with their new launches just after the last month’s drop.
The Urban Redevelopment Authority (URA), released a data, of 932 sold units by the developers over last month in contrast to 675 units sold in the same month but previous years, October 15, Monday.
Compared to 617 units being sold in August, sales hikes to 51 per cent, URA record revealed.
September’s record presented a snap back from August during when private residential home sales flop as much as 50.6 per cent after the cooling measures implemented by the Singaporean government July 2018.
DEMAND FOR NEW DEVELOPMENTS
Hutton Asia, a real estate group said that recovery last September was anticipated because of the normalcy was achieved following the controversial cooling measures, launches keep coming and it’s lunar seventh-month end.
Last September, at least 1,169 units were launched by the developers compared to the same month of the previous year which sold only 73 units and August it sold only 534 units.
Among the highest selling developments were the recent launches such as the Mayfair Gardens of Bukit Timah and Jadescape of Shunfu Road, where 82 and 327 residential private units sold, respectively. The two new launches accounted nearly 44 percent of the total sales in September, reiterated by Huttons.
Another reason for September’s bulk sales is due to the continued public needs and demand of units around, Park Colonial in Potong Pasir, Stirling Residences of Queenstown and Riverfront Residences of Hougang.
The lead researcher of Hutton, Mr Lee Sze Teck, told he expects a maximum of 3,500 units which will be launched for this year’s last quarter.
These cover the mega launches like the Parc Esta at Eunos in 1,399-units, Whistler Grand at West Coast in 716-unit and 548-unit Kent Ridge Hill of Pasir Panjang. When it comes of sales, developers can sell as minimum 0f 9,000 and a maximum of 10,000 for the whole year, he further added.
BUYING PICKS UP FURTHER
Property analyst explained that buying activities will stay active as launches over the cards are increasing, including the Parc Esta and Woodleigh Residences which are located in the former Eunosville HUDC.
In addition, buyers have other options for new homes sales than the resale market.
” Some buyers might have shifted their buying options and interest over new private home sales while prices of resale private homes are controlling firm. The individual resellers might have been hesitant to reduce the prices while job market and the economy is active and healthy,” told Christine Sun, the Orange Tee’s lead of research and consultancy.
She also explained that the latest cooling measures – more rigid financial guidelines and hiked Additional Buyers’ Stamp Duty – have pinned foreign purchasing interest.
Other national shares over new non -landed housing pie dropped to 4.2 per cent previous month, decreased from 5.8 Percent previous August and 10.8 per cent year-on-year, she added.
While developers built more trust and confidence in launching developments, the rebound from the new cooling measures will happen sooner than being expected, told Ong Teck Hui, the JLL’s national director of research and consultancy.
” It also showed that while there is a low demand, buyers are still in the market and ready to buy at a very reasonable price.”
If the fad of launches can be maintained with a just sales take -up the market faith and confidence would grow and restoration from cooling fever perhaps be sooner than expected, he told.
