Increased Volume In Recent Private Home Sales

On 15 April 2019, the Urban Redevelopment Authority released the latest figures of housing sale in Singapore. The URA obtains these statistics through periodic surveys conducted among licenced housing developers.

According to these recent reports, there is a distinct rise in the sale of private homes throughout Singapore. Developers have, according to the survey reports, collectively sold 1,054 units in March 2019 alone. This is a big leap from the 455 units sold in February. The number is also relatively much higher than the sale of private homes in March 2018. Last year, only 716 units were sold in March. The figures do not include the sale of executive condominium (EC) units.

The cooling measures put into effect in July 2018 seems to have not dampened sales of private flats. New launch developments have garnered the most sales. Almost a third of the total sales in March were made in the developments of The Florence Residences and the Treasure at Tampines.

Most market researchers have observed that the sales are triggered by a supply increase as Singapore has seen more than ten development launches in March alone. Buyers have not only had a range of locations to choose from but also been able to find projects which are suited to their budget for investment. Observers are of the opinion that the sales would continue to see an upward trend in the coming months as more developments open up to the market.

Some developers are however critical of the rise in sales and hope that the market does not saturate soon. They predict that developers may need to slow down their launches to prevent steep fall in property rates and overloading of the market inventory.

It remains to be seen what the coming months hold for the property market and how developers strategize, advertise and drive sales of their upcoming launches before the next five-year Additional Buyer’s Stamp Duty deadline. The development costs for most projects still remain high due to the July 2018 policy changes.

The current property launches have been mainly been made outside the central region of Singapore. Of the 1812 units offered in March 2019, over 1000 units were in the outskirts of the central region while only 170 units were launched in the core central region.

If upcoming developments manage to offer an eclectic range of facilities and concepts, the sale of private homes may continue to be generating more demand and reduce the supply-demand mismatch in the current property market scenario. However, a lot depends on the location and corresponding reasonability of pricing of the flats to be launched in the near future.


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