Singapore's January new home sales break into a sprint as talk of curbs grows
Major launches also contributed to 1,606 units sold, more than double that a year ago and is also highest monthly figure in over two years
Singapore
DEVELOPERS enjoyed an early Chinese New Year bonanza last month when sales of new private homes surged to 1,606 units, up 32 per cent over December's 1,217 as determined buyers made their Huat Ah! sprint. (Huat Ah! means to prosper in Hokkien).
It is also the highest monthly sales notched since July 2018's 1,724, and up 159 per cent from the 620 achieved in January 2020, according to flash estimates from Christine Sun, OrangeTee & Sun, senior vice president, research & analytics.
The Urban Redevelopment Authority will release January monthly volumes on Feb 15.
January's sizzling sales were due to launch of mega project The Normanton and speculation of possible measures to rein in the residential market which seemed to have the opposite effect of spurring buyers into action.
Talk is rife that policy tweaks could be on the horizon to cool Singapore's buoyant residential segment, as the government keeps an eye on the real estate market, The Business Times reported this month.
Home prices gained pace last year, even as the economy fell into recession.
Deputy Prime Minister Heng Swee Keat said in January that the property market must remain stable so young Singaporeans can own their homes.
Ms Sun said: "New home sales surged last month as many buyers rushed to secure units ahead of possible property curbs.
"The strong sales coincided with a few mega launches where a high number of units were launched by developers last month," said Ms Sun.
January saw a few key launches. The best-selling project was the 1,862-unit Normanton Park which sold 625 units.
This was followed by the 700 unit-Parc Central Residences EC (executive condominium), which sold 417 units, and 429-unit The Reef at King's Dock that moved 221 units.
Other projects like Ki Residences at Brookvale, Treasure at Tampines, Jadescape, Parc Clematis and The Garden Residences were among the other top sellers last month.
Including the 489 sales of ECs - a private-public housing hybrid - total new home sales jumped to 2,095 units, up 65.6 per cent over December 2020 and up 227.3 per cent from January 2020.
Normanton Park is the largest city fringe project and its attractive pricing drew many buyers to the project, said Ms Sun.
"Sales have also been strong at The Reef at King's Dock as there has not been a new launch in the harbourfront area for many years. Some people were buying into the potential of the Greater Southern Waterfront development," she said.
An undersupply of new ECs also drove many buyers to Parc Central, she added.
PropNex CEO Ismail Gafoor said the headline number - 1,606 units sold (excluding ECs) last month - needs to be seen in perspective.
He noted that sales at Normanton Park and The Reef at King's Dock accounted for about 53 per cent of the monthly new home sales.
"We believe Normanton Park and The Reef At King's Dock did well due to their own unique selling proposition and attractive attributes. We should not assume that every single new launch will perform similarly well, and the truth is there are launches that did not excite the market as much for varying reasons, pricing being one," said Mr Ismail.
"We observe that most buyers are discerning and are entering the market to buy properties after they have carefully considered their options and finances," he said.
The majority of units sold at Normanton Park (about 78 per cent) and The Reef At King's Dock (about 87 per cent) were smaller homes with sizes below 800 sq ft, he said.
"This tells us that buyers are still price and quantum sensitive. Many developers are aware of this and we expect them to price units cautiously," said Mr Ismail.
The price range of units sold below 800 sq ft in Normanton Park was from S$800,000 to S$1.35 million. Those at The Reef At King's Dock were sold for between S$930,000 and S$2 million.
On the new launch effect which sees some projects enjoy high sales only to peter out subsequently, Mr Ismail said. He noted that Clavon sold 11 units in January 2021, according to Realis data. The 640-unit Clavon was the top-selling project in December, with 473 units snapped up.
"It is not uncommon for sales to slow down after the initial project launch, as smaller and more affordable units as well as choice units have already been snapped up. In terms of price, the median transacted price at Clavon was not that much higher in January," he said. The median price per sq ft in January was S$1,686 per sq ft (psf) while it was S$1,633 psf in December.
