Last year, private non-landed home sales fell a considerable 16.8%. 8,795 units were sold in the whole of last year, the biggest decline since 2012 when sales fell 6.3% following the first implementation of the Additional Buyers’ Stamp Duty (ABSD).
Could last year’s ABSD hike have caused a dip in home sales?
Prices, however, rose. Going by regions, non-landed home prices in the Core Central Region (CCR), Rest of Central Region (RCR) and Outside Central Region (OCR) all rose; by 6.7%, 7.4% and 9.4% respectively.
Overall, new private home prices rose 7.9% last year. This is a positive growth from the 1.1% rise in 2017.
Some analysts are predicting a growth in overall private home prices this year of up to 3%, following in the footsteps of last year’s. Pent-up demand, new launches and a positive economic outlook are factors which could have given the market boost last year. This year’s growth is however dependent on economic growth and barring unforeseen events.
9,800 new units from GLS and collective sales expected to launch
Over this year and perhaps spilling over into 2020, developers may launch 9,800 units on government land sale sites and collective sale sites acquired over the past few years.
This is in addition to the 35,649 unsold units (including executive condominiums) pending planning approval.
There are some in the other camp who see the cooling measures and large supply pipeline as factors which may affect private residential home sales this year.
Even though prices of some of the latest launches such as 8 Saint Thomas, New Futura and Marina One Residences all held up well, there is some uncertainty in whether prices may remain stable at best due to a substantial pipeline of new supply.
The 2,225-unit Treasure at Tampines and 1,410-unit The Florence Residences is expected to keep prices of private non-landed homes in the suburbs flat.