Developers moved 821 units despite fewer units launched in June. Singapore’s private residential market achieved some semblance of stability a year after the government rolled-out additional cooling measures in July 2018.
Last month, developers managed to sell 821 new units, excluding executive condominiums (ECs), even as only 670 new units were launched from four projects and June being a typically slow month for property sales.
Analysts noted that while June’s sales was 13.8 percent lower from the 952 units sold in May, it was 25.5 percent higher compared to the 654 units transacted in June 2018.
In fact, last month registered the highest number of sales for the month of June (excluding ECs) over the past six years, said Christine Sun, head of research and consultancy at OrangeTee & Tie.
Sky Everton emerged as the top selling project for the month, with 134 units sold. It was followed by Treasure at Tampines and Parc Botannia, with 70 units and 60 units sold, respectively. Completing the top five projects were Parc Esta (54 units) and The Florence Residences (48 units).
“We believe Sky Everton did particularly well as it is a rare freehold launch near the city centre and near an upcoming train station. The price point also presents value, compared to some 99-year leasehold property launches,” said Tricia Song, head of research for Singapore at Colliers International.
Sun noted that the market witnessed a surge in the number of new freehold condos being sold.
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URA Realis data showed that 250 non-landed new freehold units were transacted in June, while 316 units were sold in May. She revealed that the last highest number of new freehold condo sales recorded was in September 2013, when 439 units were sold.
“The uptrend is expected to continue as more freehold units will be launched in the coming months,” said Sun. “It is rare to have a good selection of premium, freehold projects being launched at choice locations. This could be a good opportunity for buyers to snag a freehold property; otherwise, they may have to wait for the next collective sales cycle that is likely to take place many years down the road.”
Looking ahead, Song expects developers to adopt a prudent pricing strategy given that most buyers remain value-conscious and price-sensitive, while Sun expects developers to fast-track their launches ahead of the lunar seventh month.
And should the buying momentum continue, CBRE expects “total new sales for this year to come to around 8,000 units, which has been the underlying demand level established over the past six years since TDSR was introduced”.
Fiona Ho, Digital Content Manager at PropertyGuru, edited this story. To contact her about this or other stories, email email@example.com