High-end condo sales surge as March new home purchases double
Overall sales hit 1,293 from February's 645; recovering economy, low interest rate environment, fear of new cooling measures among reasons cited
Singapore
NEW private home sales soared last month as buyers rushed in after taking a break for Chinese New Year in February.
March sales doubled to hit 1,293 from February's 645 with posh homes selling like hot cakes as luxury flats take centrestage according to URA Realis caveats on April 12. Official monthly data will be released on April 15.
It would be the highest new private home sales tally for the month of March since 1,780 units were shifted in March 2017, said Ismail Gafoor, PropNex chief executive.
Transactions in the most expensive region, the core central region (CCR), was 546 units or 42.2 per cent of new sales, an eight-year high. Sales in rest of central region (RCR) and outside central region (OCR) made up 385 (29.8 per cent) and 362 (28 per cent) respectively, said Christine Sun, OrangeTee & Tie senior vice-president, research and analytics. CCR, RCR and OCR sales in February 2021 was 58, 325 and 262 respectively.
The previous record in the CCR was in November 2013 when 668 units were sold, said Lee Sze Teck, Huttons Asia, director research.
"Overall, the sales performance in March reflected the underlying demand for new projects that are well-located, with relatively attractive pricing," said Mr Ismail.
"The improved sentiment and ample liquidity in the market continue to spur buying interest. Generally, we observe that most buyers remain discerning, entering the market when they identify a value-buy. Speculation on potential cooling measures is rife, perhaps some buyers may decide to buy sooner rather than later, lest any new curbs affect their purchasing ability," he added.
Added Steven Tan, OrangeTee & Tie chief executive: "We expect the volume of new sales to be propelled by the recovering economy, low interest rate environment, and strong demand. As the hybrid work model likely to be a new norm in the future, many homebuyers are looking for new developments with coworking facilities and flexible space designs to accommodate their new lifestyle."
CCR volumes were boosted by the launch of the 558-unit Midtown Modern which saw 368 homes or 66 per cent moved at a median price of S$2,726 per square foot (psf). Another CCR project RV Altitude sold 77 units. A high-profile deal was the Eden where non-citizens bought the entire development of 20 units.
The Tsai family of Taiwan behind snack food giant Want Want China Holdings is the party that has bought all 20 units at the completed freehold luxe development, Eden, at 2 Draycott Park, The Business Times reported last week. The S$293 million deal - made up of three transaction - with an average price for the 20 units worked out to about S$4,827 psf, the report added.
"Despite the high-profile case of Eden where the entire development was sold in three transactions to non-citizens, more than 80 per cent of the transactions in March are made by Singaporeans. Foreigners made up less than 5 per cent," said Mr Lee.
CCR launches are slated to do well this year though the bulk of transactions are for smaller and more affordable homes.
Looking at the caveats lodged, units that are below 800 square feet accounted for about 78 per cent of those sold at Midtown Modern last month, said Mr Ismail.
"Meanwhile, RV Altitude - also in the CCR - garnered its strongest monthly sales since the project was launched in January 2019," he said.
With the 77 units sold in March 2021, the 140-unit development is now fully sold, according to Mr Ismail. "We believe a key sales driver was the attractive price discount dangled by the developer last month. In our view, the price discount offered then was a strategic move which helped to garner sales, before the launch of nearby Irwell Hill Residences (which launched on April 10)," said Mr Ismail. The developer offered discounts of up to about S$360,000 over a limited period last month.
Of the 546 CCR new homes sold in March, 189 cost between S$1-$1.5 million; 217 were between S$1.5-S$2 million and 101 were between S$2-S$3 million, said Ms Sun.
On homes which cost more than S$5 million, 16 were sold in March, she said. The last record was January 2020 with 16 units sold; before that was April 2019 with 18.
According to Mr Lee, there should be more than 12 CCR projects this year providing a total of 2,891 units against 10 CCR developments in 2020 with 2,513 units.
So far in 2021, three have been launched - Midtown Modern, Irwell Hill Residences and The Atelier. Buyers snapped up 278 of the 540 units of City Developments' Irwell Hill Residences, a 99-year leasehold development in prime District 9, over the weekend.
The condominium off River Valley Road went for an average selling price of S$2,700 psf.
This year's first quarter new private home sales has recovered to pre-pandemic level, noted Nicholas Mak, ERA Realty head of research and consultancy.
"Based on the caveats lodged in the first three months of this year, developers sold 3,376 new housing units, 30 per cent more than new homes sales volume in Q4 2020. Developers also sold 57 per cent more new housing units in Q1 2021 compared to the corresponding period one year ago," added Mr Mak.
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