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Singapore new private home sales hit 6-year high
19 Jul

Singapore recorded its highest sales in six years for new private homes in June, as condominium units became more popular on the market. 

Developers sold 821 homes in June, not including executive condominiums. June is typically as slow month for home sales due to scholastic holidays. 

Nonetheless, a significant increase was recorded during the last month of Q2, rising 25.5% compared to the 654 units sold during the same time last year, despite a drop in the number of project launches, data published by the Urban Redevelopment Authority (URA) showed on Monday, July 15. 

The June figures were also the highest recorded since 2013, when home sales rose to 1,806 units. New private home sales were down 13.8% however, compared to May. 

"Despite the implementation of the cooling measures and heightened volatility arising from the escalation of the US-China trade tension, the return of confidence points to sound fundamentals, rising affluence and ample liquidity in Singapore real estate," said Ms Christine Li, head of research for Singapore and Southeast Asia at Cushman & Wakefield.

"Investors with a long-term view are fully cognizant of the value that Singapore real estate offers, beyond the vagaries of cyclical price movements and cooling measures," she added.

Despite the upbeat housing market data, a shortage of new inventory for buyers was also recorded. Developers posted 670 new homes for sale on the market, marking a 51.9% decline from the 1,394 units released in May and down 7.7% from the 726 homes put on the market in June 2018. 

Last month saw the launch of four projects – Sky Everton, Lattice One, Seraya Residences and Sloane Residences – compared to the nine in May. 

According to PropNex Realty CEO Ismail Gafoor: “We have to bear in mind that the month of June observed school holidays and there was a lower number of newer projects launched. Hence, with a total of 821 units being sold for the month of June, this is a credible sales performance.”

Sky Everton, a freehold development project which saw 134 out of the 262 units launched being sold at an average price of S$2,523 per square feet (psf), was one of the key contributors to June’s sales. 

In second place was Treasure At Tampines, a 99-year leasehold which sold 70 units at an average price of S$1,320 psf. 

OrangeTee head of research and consultancy Ms Christine Sun pointed out that the number of freehold condos being sold on the market had hiked significantly. 

250 non-landed new freehold units were sold in June, according to URA transaction data, while 316 units were sold the previous month, Ms Sun noted. 

This was the highest number of freehold condo sales recorded since September 2013, when 439 units were sold. 

"The uptrend is expected to continue as more freehold units will be launched in the coming months," said Ms Sun. 

"It is rare to have a good selection of premium, freehold projects being launched at choice locations. This could be a good opportunity for buyers to snag a freehold property; otherwise they may have to wait for the next collective sales cycle that is likely to take place many years down the road," she added.

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