As the new launch condos were introduced into the market during the school holidays of June month, it is also leading to increased interest rates in the future. Around 488 residential units, without including executive condominiums, were sold during the month of June and this count is much less compared to 1355 units sold in the previous month. The reports state that it was the lowest sale record since May 2020 when showrooms were affected by a circuit breaker.
Sales of new homes in June month were 44% less in comparison to 872 units sold during the same month in the previous year. If we include ECs also, the sales plunged by almost 63% with 496 units sold in the previous month in comparison to 1375 units reported in May month.
As developers held back several launches during the June School holidays, several Singaporeans are further joining the travel wonders after two consecutive years of pandemic restrictions. Observations state that only 397 new units from the existing projects came into the market during June month which is very less in comparison to 1240 units launched in May.
The analysis of the recent rise in interest rates shows that several buyers have now taken a backseat; however, many others are looking for new launches. Chances are that sales during the coming months may go up with the new units to be launched at AMO Residence & Lentor Modern. The sales reported in June month further brought the second quarter to a count of 2504 units which further depicts a rise of 37.6% on a quarterly basis.
During the first half of 2022, almost 2647 new private homes were brought to the market for sale; this is the lowest launch for the first half of the year during the last 18 years. As per history, only 2080 units were launched during the year 2004. This further links to the great caution followed by developers, mainly due to cooling measures implemented in December 2021, rising interest rates, and macroeconomic uncertainties. However, the great success of units launched at Liv@MB and Piccadilly Grand during the month of May further encouraged more buyers to think about real estate investments. Furthermore, more new launches are expected to hit the market during the third quarter of the year.
As per the recent updates from Singapore real estate market, the prices of new private homes in Singapore are expected to increase with the new launches from AMO Residence. Experts also state that more demands in the market may come from en bloc beneficiaries and HDB upgraders or from people who are planning to shift from larger homes, mainly those who are not worried about rising borrowing costs. As the residential prices are getting up with rising interest rates, the higher living cost may reduce home affordability. If we talk in terms of quantum size, a huge number of new private homes, without including ECs, were observed to be in the range of $1.5 million – $2 million, which led to almost 27.4% of total sales recorded in June month.
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