News: New private home sales jump 32.2% in January

Feb 16, 2021

Normanton Park emerged as the best-selling project in January, shifting 625 units. It was followed by Parc Central Residences EC and The Reef at King’s Dock, which moved 417 and 221 units, respectively.

New private home sales in Singapore jumped 32.2% to 1,609 units in January from the 1,217 units moved in December 2020.

On an annual basis, new home sales, excluding executive condominiums (ECs), soared 159.6% from the 620 units shifted over the same period last year, making it the highest January sales since 2013.

The number of units launched last month is also the highest January figure since the URA started the series in 2007 and the highest since March 2013, said Lee Sze Teck, Huttons Asia Director (Research).

“Developers rode on the positive sentiments and pushed out more units for sale,” he said.

Including the 489 ECs sold in January, developer sales increased 65.8% month-on-month and 227.8% year-on-year to 2,098 units.

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The 1,862 -unit Normanton Park emerged as the best-selling project in January, shifting 625 units. It was followed by Parc Central Residences EC and The Reef at King’s Dock, which moved 417 and 221 units, respectively.

Completing the top five selling projects are Ki Residences at Brookvale and Treasure at Tampines.

Lee noted that the sales achieved at Normanton Park meant another record has been broken.

“This certainly creates a positive vibe and sets the tone for the property market. The affordable quantum, low interest rate environment, ample liquidity, large base of HDB upgraders, recovery of the property market, perceived shortage in supply and pent-up demand for this long awaited project resulted in the overwhelming response to this project,” he said. 

“Sales was given an added impetus in January because of the Fear Of Missing Out should fresh cooling measures be imposed on the market.”

Recent comments by government ministers on the property market had sparked rumours that new cooling measures may be introduced.

“These speculations nudged on-the-fence buyers to take action as their buying eligibility or borrowing limits could be affected by new cooling measures. Some long term investors sprang into action as they anticipate that it may be harder to own a second or third property if new cooling measures were implemented,” said Christine Sun, Senior Vice-president of Research and Analytics at OrangeTee & Tie. 

She revealed that Singaporeans continued to form the bulk of buyers, purchasing 83.4% of non-landed new homes, excluding ECs. Singapore permanent residents accounted for 11% while foreigners made up 5.6%.

Tricia Song, Head of Research for Singapore at Colliers International, said buyer demand remains strong for projects within the city fringe and suburban areas, “with a sweet spot of $1 to $1.6 million per unit, seen from the average of $1.26 million per unit in Normanton Park and $1.29 million per unit in Parc Central Residences EC”.

She noted that 73.7% of January’s total developer sales were priced at the median price of $1,000 to $2,000 per sq ft (psf), compared to 85.6% in December 2020.

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Meanwhile, 25.8% were priced at the median price of $2,000 to $3,000 psf, compared to 13.1% in December when suburban projects dominated.

In January, the Rest of Central Region made up 68.9% of total sales, excluding ECs, while the Outside Central Region and Core Central Region made up 26% and 5.2%, respectively.

Looking ahead, Song expects February to witness a sequential decline in sales, due to the lack of new launches as well as the lunar new year festivities.

“However, given the gradual roll-out of the vaccines and recovery of the global economy, momentum in the housing market remains positive,” she said.

Upcoming major projects in the pipeline include Midtown Modern and One Bernam in the CBD; Perfect Ten at Bukit Timah Road, Klimt Cairnhill, The Atelier and Peak Residence in prime Districts 9,10 and 11.

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