New home sales seem to have stabilised, after the recent cooling measures introduced in December 2021.
Month-on-month, the number of new homes sold to foreign buyers has also seen a marked increase.
Sales of new private homes seem to have stabilised after cooling measures were implemented at the end of last year. Excluding executive condominiums (ECs), developers sold 653 units in April, about the same as the 654 units sold in March. Most of these were in the Rest of the Central Region (RCR), where 289 units were sold.
A total of 206 units in the Core Central Region (CCR) were sold, while 158 units were transacted in the Outside Central Region (OCR). For the first time in 12 months, sales in the CCR were higher than the OCR. Analysts noted that the low level of unsold stock in the OCR meant that buyers have increased their budget and traded up to the next tier of private housing in the RCR or CCR. The best selling projects include Normanton Park, Riviere and One Pearl Bank.
Analysts noted that the number of new sales to foreigners has more than doubled from 25 units in March to 59 units in April after borders reopened. Only five units sold to foreigners were in the OCR, with 27 units sold each in the CCR and RCR. The increase in the number of sales to foreigners is a testament to the attractiveness of Singapore’s residential market, despite the heavier stamp duties. Foreigners buying properties in Singapore are subject to paying 30% additional buyer’s stamp duty (ABSD). Before the cooling measures were implemented in December, foreigners paid 20% ABSD.
Analysts observed that Singapore has gained the upper hand against many other countries with the speed of our economic recovery and transition into endemic living. These have boosted investors' confidence to park their funds here for the long run. But macroeconomic uncertainties, higher ABSD and rising mortgage rates could weigh on the sentiment of some prospective buyers.
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