Sales of New Private Homes in Singapore Drops to Lowest Point since May 2020 after CNY Lull

Reports reveal that Singapore developers put a higher number of new private homes for sale during last month; however, they sold lesser units due to the lull of Chinese New Year and the absence of new launches.

The sentiments related to Singapore residential market are also affected by rising interest rates, the surge reported by covid-19 cases, and the heightened tensions caused by the Russia-Ukraine war.

As per the data released by the Urban Redevelopment Authority, the buyers in Singapore have invested in 527 private residential properties which are 23% lesser than 680 units sold in January. Furthermore, the count is 18.3% lesser than 645 units sold in the previous year. It is reported to be the lowest new home sale on the monthly basis right since the sale of 487 units in May 2020.

Stats report only one new launch in the Haig Lane – 32 unit Royal Hallmark out of which 10 units were sold in the last month with the median price of $1905 psf. The senior director of R&D consultancy at JLL, Mr. Ong Teck Hui, recently stated that developers in Singapore are cautious about cooling measures due to a considerable rise in the additional buyer’s stamp duty rates and total debt service ratio tightening. These new terms are making it harder to access market demands and to decide project pricing before launch.

It is observed that the developers have announced 194 new homes in the previous month which is 9% higher than 178 homes launched in January and 16.2% higher than the total 167 units launched in the previous year. If we talk about the executive condominiums, the sales of new private homes are reduced by 23.6% with a count of 559 units which was otherwise reported to be 732 units in the month of January.

Nicholas Mak, the head of Research and Consultancy at ERA Realty recently said that the house board resale market is expected to grow with extended support to the private housing sales, irrespective of the changing interest rates and the impact of the Russia-Ukraine crises.

The developers are planning to launch many new launch condos during the second quarter and the list includes Piccadilly Grand from MCL Land in Northumberland Road, EC North Gaia from Sing Holdings in Yishun, Liv from Bukit Sembawang, and The Arden in Phoenix Road from Qingjian Realty.

Tricia Song, research head of CBRE South East Asia recently stated that North Gaia may perform stronger in the market due to rising demands from upgraders as well as first-time home buyers. Other than this, the residential market is also expected to get influenced by safe-haven flows during heightened geopolitical uncertainty.
Reports also reveal the rising interest of foreign investors in a new launch with the purchase of 26 new units in February 2022 in comparison to 22 units in December 2021.

The Singapore housing market may also experience a supply crunch this year due to a considerable drop in the number of new home launches this year.




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