Despite June usually being a slow month for the local property market, demand for new homes seemed to have remained resilient.
While fewer new units were sold last month, the outlook seemed better than the same month last year.
New home sales in June down 13.8%
Sales of new homes fell 13.8% last month, but compared to the 654 units sold in June 2018, this year’s June sales of 821 units are still 25.5% higher.
In addition, the 670 private homes launched last month was 52% lower than the 1,394 units in May.
This is also 7.7% lower than the 726 units launched last June. Taking into consideration the markedly lower number of new homes launched this June, last month’s demand for new homes is more promising than disheartening.
Some analysts are however wary about the possible dampening effect of slowing economic growth. Singapore’s economic growth last quarter was the lowest in a decade. While the possibility of a recession is debatable, continued economic lull may adversely affect overall investment sentiments.
Others are a little more positive about buyers’ resilience; as a full-year recession is not expected, buyers may be more cautious but will continue to keep their eyes on new developments with potential.
Sky Everton sold 134 units to top charts
In the meantime, buyers are still exercising a fair bit of caution when making purchases and are more value-conscious. Competition in the market is picking up as the number of units in the market will be ample in the second half of the year. Hence, developers are picking up on the trend and trying to price new projects more favourably.
Buyers can expect more launches as developers try and rush some launches before the Hungry Ghost month which begins on Aug 1.
Last month’s chart-topper was Sky Everton with 134 units sold for a median price of $2,523 psf. The bulk of the 674 units sold were from previous launches.
The average sale prices at these developments were $1,320 psf, $1,296 psf and $1,690 psf respectively. These projects were launched earlier this year and are all located near MRT or LRT stations.