SINGAPORE: New private home sales in Singapore fell 64 per cent in June from a month earlier, mostly due to the lack of commences.
Excluding executive condominiums (ECs), developers sold 488 units final month, down from 1, 355 units in-may , according to the statistics released on Fri (Jul 15) from the Urban Redevelopment Expert (URA).
This is actually the lowest number of sales since May 2020 when developers sold 487 units, noted Ms Christine Sunlight, senior vice president of research and analytics at OrangeTee & Tie. Singapore was in the middle of a COVID-19 “circuit breaker” then.
Including ECs, product sales in June dipped 63. 9 % compared to the previous month.
On a year-on-year basis, brand new sales, excluding ECs, fell 44 % from the 872 products sold in June last year.
The Primary Central Region brought new home sales with 206 models sold, followed by Rest of Central Region with 171 units and Outside Central Area with 111 products.
NO NEW PROJECT LAUNCHES
Property analysts declared that the lower sales determine was expected considering that there were no new project launches in June.
“The lacklustre market for new private homes in June 2022 is expected, because it was the school holidays and pointless for brand spanking new projects to be launched, ” said Mr Ong Teck Hui, senior director of research & consultancy at JLL.
Apart from the June vacation lull, Ms Sunlight said some audience may be holding back again due to increasing interest rates and global economic uncertainties.
“Given the latest interest rate hikes, some buyers may have used a temporary backseat in order to reassess their funds or housing affordability, ” she mentioned.
“Others may be waiting for more project launches over the following few months, especially since new projects will be launched in the suburban areas where new home supply is many lacking. ”
However , Colliers’ Catherine He said inspite of the lack of launches and macroeconomic uncertainties, sales in June continued to “defy the odds”
“Sales were well distributed across existing launches, such as Riviere, with 25 systems sold and Normanton Park, with twenty one units sold. Remarkably, it was reported that Normanton Park had been sold out this one fourth, reflecting the strong demand for new houses, ” said Microsoft He, director of head and analysis.
SALES LIKELY TO GRAB IN JULY
Looking ahead, new sales are expected to rise in Come july 1st on the back of suburban launches such as AMO Residence with Ang Mo Kio Avenue 1 (372 units) and Lentor Modern at Lentor Central (605 units), said Ms Tricia Song, CBRE’s head of research, Southeast Asia.
“The projects mentioned are required to see steady curiosity from upgraders and first-time home customers who are largely unaffected by the recent circular of cooling procedures, ” she additional.
Huttons Asia’s senior director with regard to research Lee Sze Teck expects sales in July to increase to around 700 in order to 800 units, citing the launch of AMO Residence.
“This is the first major non-landed task launch in the OCR in 2022 and the first in Ang Mo Kio in eight years, ” he noted, adding that projects in the Outside Central Region will likely drive sales in the next few months.