Last month’s sales figures from the new private home segment leapt 84.9% from October 2018 with 928 units sold.
Positive demand from buyers for new private properties
There was however a 27% decline from the 1,270 units moved in September. This could be due to the fact that there were fewer launches in the city fringe and mass-market segments.
In October, developers launched only 892 private homes (excluding executive condominiums or ECs), down almost 48% from the 1,714 units the month before. In October last year, only 218 units were launched. Units from projects launched earlier also sold well due to their affordable price ranges in comparison to the newer launches.
Including the public-private housing hybrid executive condominiums, 955 developer-launched units were sold last month, down 26.4% from the 1,298 units sold in September. Sales of new private homes in the prime district or core central region (CCR), city fringe or rest of central region and suburbs came in at 19.6%, 38.3% and 42.1% respectively. In the CCR, there was a sharp rise from 4.7% in September.
New private home prices likely to rise by 2% in 2019
In the core central region, in particular, home sales almost tripled from the 60 units in September to the 182 units sold in October. This is largely driven by the launches of Neu at Novena, Midtown Bay and Royalgreen.
In addition, the number of private homes that sold above $2,500 psf has also increased. It has, in fact, reached a 10-year high of 844 units within the first 10 months of this year. 104 new homes were transacted at $5 million and above between January and October this year alone, the highest since the 155 units sold within the same period in 2011.
Analysts are expecting prices of new private home to show a 2% raise this year though it may be kept mostly within current ranges due to the economic slowdown and the increase in supply in the pipeline.