Singapore Property Market: New Private Home Sales (Oct 2021)
Sales of new private homes bounced back in October, after two months of consecutive declines; Market Sentiment remains strong.
A total of 909 private condo units moved last month, up 9% from 834 units in September. Year-on-year, this represents a 39% increase from the 654 units sold in October last year.
There were 661 new homes put on the market last month, three times more than the 210 units launched in September. This represents a 39% increase from the 423 units a year ago.
A total of 10,918 new homes were sold in the first 10 months of this year, surpassing full-year sales in 2018, 2019 and 2020. New home sales in the suburbs made up 38.2% of total sales, followed by homes in the city fringes and central Singapore at 30.9% each.
Best-selling new homes were Jervois Mansion, a freehold condominium project in District 10, and Normanton Park, which transacted 104 and 73 units at a median price of $2,553psf and $1,839psf respectively.
Including Executive Condos (ECs), a total of 1,045 units were transacted in October 2021. This represents a 50.6% increase compared with October last year. This is also the highest monthly sales for October in five years. Month-on-month however, this translates to a dip of 19.4% from 1,296 in September.
Despite no new EC launches last month, developers sold 136 EC units. Parc Greenwich launched in September moved 84 units, at a median price of $1,251psf. The current supply of unsold EC units is running very low at 221, and is anticipated to deplete by end of the year. The next EC launch will be North Gaia at Yishun Close, in Q1 2022.
Analysts are attributing the strong buying sentiment to a few factors: Buyers may purchase for fear of future price increases. More HDB upgraders are snapping up condominium units in a buoyant property market, spurred by resale flat prices climbing faster than those for private housing. The buying momentum may also pick up with the further reopening of borders, allowing foreign buyers and overseas investors easier access to Singapore’s property market. Foreigners accounted for 6.8% of October new home purchases. This is one of the highest percentages since 2018.
Analysts are expecting the supply of new homes to decline further next year as fewer collective deals have been successful in the past two years. CBRE expects private home prices to rise by 6% to 7% next year.
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