Two major new launches in Singapore including Liv@MB and Piccadilly Grand brought the private home sales prices up by a considerable amount as buyers started taking the latest round over property cooling measures amid tighter home supply.
As per the Singapore property market reports, buyers invested in 1356 units in the month of May which is almost double the 660 units sold in April. Moreover, it is 51.5% higher in comparison to the units sold in the previous year.
But the total sales without including executive condominiums for the year till date is observed to be 32% down with only 3841 units in comparison to the previous year. However, if we include executive condominiums, the new home sales increased to 1376 units with a 62.6% rise in the month of May in comparison to 846 units sold in April.
Developers have now rolled out almost three times more new homes with a total count of 1240 in the previous month in comparison to 397 units in April. The volume of the new launch was observed to be 140% higher than the 516 units launched in the previous year. If we include new ECs, the count of new units improved by 22% in the month of May in comparison to the previous month.
As the market was experiencing a great appetite for the new homes since recent cooling measures, the new project launches provided better opportunities for the interested investors. As per the real estate property experts in Singapore, with the increased demand for well-located property projects and robust resale prices of HDB flats, the buyers are now interested to lock suitable mortgage rates before the interest rates rise further.
Another encouraging factor is the strong median prices of Liv@MB and Piccadilly Grand properties prices with the estimates of $2,175 per sq ft and $2405 per sq ft, respectively. The absence of new unit launches and supply crunch in the suburb locations has motivated several buyers to shift to the city fringe and it further boosted sales of the two popular property projects.
With the firm land prices, several buyers believe that the selling price may stay elevated for future launches. It is also observed that the strong sales of May month may even incentivize developers to continue with the new launches during the second half of the year. As a result, buyers may expect the primary home sale market to go stronger in the second half of the year 2022 in comparison to the first half.
During the third quarter, many new launch condos may hit the market including Lentor Modern located at Lentor Central, The Arden located at Phoenix Road, Seneca Residence located at Tanah Merah Kechil Link, and AMO Residence located at Ang Mo Kio Avenue. Reports reveal that several pricier condos exchanged hands last month out of which 84% of the total property sales included transactions ranging from $1 million to $3 million. Even foreigners also purchased 30% more units per month during the first quarter of 2022.
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