Singapore Property Market: New Private Home Sales (Nov 2021)
Sales of new private homes five-month high in November; Market sentiment currently strong but transient adjustment in demand is anticipated following the latest cooling measures.
A total of 1,547 new private homes were moved in November 2021, up nearly 70% from 911 in October 2021. Year-on-year, this represents a 100% increase from the 774 sold in November 2020.
So far, new home sales for this year - 12,467 units have already exceeded the whole of last year's sales of 9,982.
A total of 1,283 new homes were launched last month, up 94% from just 661 in October, but down 6.7% from 1,375 a year ago.
There were four new launches in November. The two best sellers were the 696-unit CanningHill Piers by the Singapore River and 219-unit The Commodore at Canberra (Sembawang) which transacted 576 and 164 units respectively. These two launches accounted for 47.8% of the total new home sales in November, and were transacted at a median price of $2,887psf and $1,513psf respectively.
178 units were transacted in the prime area at existing projects The Avenir and Leedon Green.
59% of total sales came from the city fringe area, while the suburbs accounted for 29.7% of total sales.
Perfect Ten, a 230-unit freehold development located at Bukit Timah has announced a one-time 5% discount to its buyers on the launch happening this weekend, in view of the new cooling measures introduced on 16 December 2021.
Analysts anticipate that investors or non first-time buyers will exercise greater prudence in their subsequent property purchase, and many might consolidate their funds and opt for bigger units and landed properties. Belgravia Ace, a freehold strata landed project that is going to be launched in January 2022, is likely to be very well subscribed.
Fewer projects and less than 9,000 new homes may be released in the market next year, which is about 17% to 20% lower compared to 2019 and 2020.
With the depleting new homes supply and a robust demand that is exceeding current supply of new homes, analysts anticipate that prices will remain strong. Following the introduction of the latest property cooling measures however, analysts are anticipating a transcient adjustment in demand and a slower rate of price increase moving forward.
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