September’s sales figures for new private homes was the highest in 7 years despite last year’s cooling measures, which were implemented in July 2018. This high number is only superseded by the 2,621 units sold in 2012.
A surge in September’s sales of new private homes
There was a 13% increase in the number of new private homes sold last month from August. 1,270 such units were sold in September as developers increased their sales and marketing efforts after August’s lull due to the Hungry Ghost Month.
Buyers showed particular interest in the city fringes with 4 out of 5 launches last month in these areas. Only Cuscaden Reserve was in prime district 10, the rest – Avenue South Residences, Meyer Mansion, The Antares and Uptown@Farrer are all in the city fringes. Almost 60% of last month’s sales were for properties in these areas.
Last month’s top seller in the segment was Avenue South Residences. The redevelopment of the Greater Southern Waterfront district could be part of the reason for the success of this property. 361 units were sold here at a median price of $1,941 psf.
Singaporeans and PRs made up the majority of buyers
While some may think that foreign influences may have changed the number of buyers, most of them were either Singaporeans or Singapore Permanent Residents (PRs). Analysts say that this interest in the local property market may be a show of buyers’ or investors’ confidence.
New private home sales are expected to exceed 9,000 this year though some analysts are not convinced that the market is overheating. The rate of growth in this segment may be decreasing, despite a 0.9% rise in sales prices last quarter and a 1.5% increase in Q2. However, Singapore’s political and socio-economic stability may boost buyers’ confidence and real estate here may attractive to investors who have decided to turn to safer, less risky investments.