New Singapore domestic sales jumped by almost 60% a month to 1,217 units in December. Complete 2020 sales went up to 10,008 units, the Business Times announced (BT).
Sales were growing even though Singapore faced its toughest contraction in 2020, as several countries were driven into lockouts by the global pandemic.
In the wake of December, Christine Sun, Director and Senior Vice President Analysis and Analytics of OrangeTee & Tie, addressed the caveats for the Urban Redevelopment Authority (URA) defining 2020 as a “superb year.”
Noticeably, the number for December may change, as URA reveals its revenue details on Friday and as a consequence of changes to aborted sales, BT said on 22 January.
Sun said that after the failed transactions were taken into consideration, the actual tally could be smaller.
“A total of 9,911 units sold in 2019 and beyond the 8,795 ones sold in 2018 will also be equal to the total new units (for 2020),’ she said, quoted by BT.
New domestic revenues rose 126.2% per year in December 2019 compared with 538 units moved.
During December’s sales, two major lance incidents contributed to the movements of 473 and 172 units – respectively, the Clavon and Ki Residencies.
Outside the Central Zone represented approximately 75,9% of all sales (OCR). 19.1 percent and 4.7 percent respectively reflected the remainder of the Central Zone (RCR) and the Central Kore Region (CCR).
The CBRE’s Research Manager Desmond Sim has described the low interest rate as a big catalyst for sales in Singapore and South-East Asia.
He said as quoted from BT: “Low interest rates in the United Kingdom and in the USA have also led to good home sales.”
In the meantime, house values have risen with anticipation from consumers. URA flash projections have shown that Singapore’s private home prices increased 2.1% in the fourth quarter of 2020, or the most substantial quarterly rise since Q2 2018, with prices increasing 3.4%
The ERA Realty analysis and consultancy head Nicholas Mak claimed that the property price index might still rise as the prices of the units transacted during the fourth quarter of 2020 were higher than in the third quarter of 2020.
In the fourth quarter of 2020, Sun showed a mid-unit price of $1,734/sqft., up 3.1% as of the third half of 2020.
Huttons Asia Research Lee Sze Teck noted developer revenues in 135 units in the first week of 2021, up 15 percent from the last December week.
He claimed that the OCR accounted for 55.6% of revenue, with the CCR and RCR contributing 30.4% and 14.1%, respectively.
“More than one high-end luxury projects in the past week have seen foreign nationals collect units, probably an early signal to show that the interests of foreigners can return,” he said.
Foreigners who purchase new homes include business guests and permanent residents, Sun added.
“The exhibition houses are visited by further customers. Any consumers are keen to purchase their target units and, if possible, able to pay premium rates. You may think behind us is the worst of the pandemic,” Mak said.