Most recent figures from the Urban Redevelopment Authority (URA) have shown a 21.9% increase in sales of new private homes (including executive condominiums or ECs) last month, though the numbers are still 3% lower in a year-on-year comparison.
Private home prices are expected to rise by 2% to 3.5% this year, compared to last year’s 7.9%. This is largely attributed to the implementation of last July’s property curbs.
Strong new home sales in November despite the year-end lull
Despite the usual year-end lull and an impending property supply glut, the new private home market performed well last month with developers having sold 1,168 units (inclusive of ECs). The figures are encouraging as only 740 new private homes were launched in November, 17% lower than the month before and almost 45% lower than the 1,342 units launched in the same month last year.
There are however some concerns about an expanding inventory of unsold stock. The number of developer-launched new private homes which remain unsold have reached 4,748 (including ECs) last month. This number is only set to grow as more private homes enter the market next year, an accumulation of the collective sales fever from the past few years. There are 31,948 unsold private homes with planning approval as of Sept 30 and this stock could take up to 4 years to clear.
Suburban projects led market uptick
Leading last month’s developer home sales were suburban projects such as Sengkang Grand Residences and One Holland Village Residences. Property analysts are expecting more capital to flow in from the Chinese mainland and this could funnel through to new residential properties all across the island.
Sengkang Grand Residences recorded the best sales last month, with almost 84% of the 280 units launched sold at an average price of $1,741 psf. The 99-year leasehold property is situated near the Buangkok MRT station.
At One Holland Village Residences, 69% of the 126 units launched have been sold at the median price of $2,606 psf. Located in a prime district and in an area slated for major rejuvenation, consumer and investor interest is expected to continue. Some of the previously-launched projects such as Parc Esta, Jadescape and Parc Botannia also fared well with 102, 60 and 59 units sold respectively last month.
Moving into the new year, analysts say a transaction volume of 9,000 to 9,800 is expected for 2020.