In the CNY slowdown and lack of launches, new private home sales decline to their lowest level since May 2020

SINGAPORE – Developers in Singapore put up for sale more new private home sales from existing projects last month but sold fewer units due to the lull of the Lunar New Year and no major sales. Sentiment was also dampened by the possibility of rising interest rates, an increase in the number of Covid-19 infections following the festivities, and rising geopolitical tensions from the Russia-Ukraine war, analysts said.

Buyers bought 527 private apartments, down nearly 23% from 680 in January and 18.3% lower than 645 a year ago, according to Urban Redevelopment Authority (URA) data released Tuesday (March 15).

This is the lowest monthly private home sales since 487 units were sold in May 2020. Only one new sale - the Royal Hallmark of 32 units in Haig Lane - sold 10 units last month. at an average price of $1,905 per square foot (psf).

Ong Teck Hui, senior director of research and consulting at JLL, attributed the cautious mood among developers following the latest cooling measures to a "significant increase in ABSD (tax) rates. stamped by additional buyers) and tightening the total debt repayment ratio (TDSR). , making it more difficult to assess demand and determine pricing prior to project implementation".

New Property Launch: Singapore's new single-family home sales drop

Developers launched 194 new homes last month, up nearly 9% from 178 in January and 16.2% higher from 167 a year earlier. Including executive condominiums (ECs), sales of new single-family homes fell 23.6%, to 559 units, from 732 units in January.

Despite the setbacks from rising interest rates and turmoil in Ukraine, the Housing Commission's strong resale market can continue, said Nicholas Mak, head of research and consulting at ERA Realty. continue to support sales of private housing.

New Property Launch coming up in the second quarter include Qingjian Realty's The Arden in Phoenix Road, Bukit Sembawang's Liv@MB (former Katong Park Tower), Sing Holdings' EC North Gaia in Yishun and City Developments and Piccadilly Grand by MCL Land in Northumberland Road.

CBRE's head of Southeast Asia research, Tricia Song, said North Gaia in particular is expected to perform strongly due to demand from upgraders and first-time homebuyers, who are largely unaffected. affected by an increase in the ABSD ratio.

In the short term, the housing market could also benefit from safe-haven capital flows amid increased geopolitical uncertainty, she added.

Ms. Wong Siew Ying, head of research and content at PropNex Realty, noted that the proportion of New Launches(excluding EC) purchased by foreigners remained stable at 4.9% of total sales. sales in February, up from 4.3% in January.

She added that the amount of foreign home purchases increased to 26 units in February from 22 units in December last year. Singaporeans accounted for 79.3% of February sales, while permanent residents accounted for 15.6% of sales for the month. Based on price quantification, the largest share of new private homes sold was between $1.5 million and $2 million, representing 36% of last month's sales.

“Next is the $1 million to $1.5 million segment, at 23.9%, as affordability remains the main demand driver,” Ms. Song said.

Excluding the EC, the city periphery accounted for more than 50% of total new sales, followed by suburbs (30.4%) and central districts (19.2%). The best sellers last month were from existing projects Normanton Park, Dairy Farm Residences, Avenue South Residence, The Florence Residences, One Pearl Bank and Fourth Avenue Residences.

The supply shortage is likely to worsen this year as the number of new home launches is expected to decline further, said Christine Sun, senior vice president of research and analysis at OrangeTee & Tie. 20% down to about 9,000 units (including EC).

She added: “While more lots will be launched from the Government Land Sale program in the first half of this year, new homes will only be on the market next year.

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Adapted From Straits Times