February's private home sales up over 57% month-on-month: URA

DEVELOPERS in Singapore sold 975 private homes in February, 57 per cent higher than January's take-up, as more units were launched for sale last month.

933 units were launched in February, of which 601 were in the Core Central Region, 115 in Rest of the Central Region and 217 were Outside the Central Region. In comparison, 598 units were launched for sale in January, and 596 units were released in February a year ago.

Meanwhile, the number of units sold in February last year was 455, or less than half the 975 private homes moved in February this year.

The figures - which were released by the Urban Redevelopment Authority (URA) on Monday based on its survey of licensed housing developers - exclude executive condominium (ECs) units, which are a public-private housing hybrid.

Including ECs, developers moved 1,314 units last month, more than double January's 640 units, and nearly triple the 457 units sold in February a year ago.

Christine Sun, head of research at OrangeTee & Tie, said: "Despite the current pandemic and uncertain economic outlook, new home sales rose a third consecutive month. This is also one of the strongest February showing in recent years."

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She added: "Moving forward, the increasing volatility of the financial markets may continue to propel investors to the real estate sector as properties are widely regarded as safe-haven assets that offer more stable returns than other investment types. The softening of the Sing dollar in recent months may attract foreigners to invest in properties here."

With the US Fed cutting interest rates to near zero, while restarting its quantitative-easing programme as part of its emergency stimulus, housing demand may be stimulated with the increased liquidity, she pointed out. In the coming months, more homeowners may refinance their housing loans while some buyers may purchase larger housing units, Ms Sun added.