Buyers are welcoming the stream of new private homes flowing into the market as more snap up units in May.
More buying new homes directly from developers
New private home sales last month rose by 53%, a substantial increase from April. 1, 121 new homes were sold last month, 8% more than the same month last year.
At the recent launch of Twin VEW in West Coast Vale, all the one- and two-bedders were sold out. 87% of the 520 units were sold at an average price of $1,385 psf. At Amber 45, 62% of the 139 units were sold for a median of $2,378 psf.
Smaller properties such as one- and two-bedders seemed to have become more popular with buyers as many who have sold their homes in en bloc deals may be looking to diversify their investment portfolio and are buying 2 smaller units instead of 1 large one. They would possibly then live in one while renting out the other.
The second half of the year crucial in determining continued success of new private home market
However, in comparison with the same 5-month period last year starting from January, only 4,427 new private homes were sold this year
This is 40% less than the 7,388 sold in the same time period last year. Some industry analysts have expressed concern with a number of major developments coming up in H2 which might affect total sales.
In 2017, a total of 10,566 new private home units were sold. To match these numbers this year, sales would have to pick up very strongly. The current numbers are quite a ways away. Rising mortgage rates might turn buyers of traditional mass market homes away as they are more sensitive to shifts in the financial sector.
There will be more launches to look forward to in the second half of the year – such as Stirling residences, Park Colonial, Daintree Residence, Riverfront Residences and Jadescape. The last 2 are on the previous HUDC sites of Rio Casa and Shunfu Ville.