New private home sales jump 53% in May

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New private home sales jump 53% in May

Sales of new private homes in Singapore reached 1,121 units in May 2018, representing a 53.1 percent jump from the month before...

Thousands of buyers turned up at the showflat of Twin Vew during the launch in May. (Photo: CSC Land)

Sales of new private homes in Singapore reached 1,121 units in May 2018, representing a 53.1 percent jump from the month before and a 7.9 percent increase from the same period last year, according to Urban Redevelopment Authority data published on Monday (18 June).

Last month’s sales volume is also the highest since August 2017, when 1,246 new private units were taken up. Moreover, launches by property developers soared by 60 percent and 186 percent to 1,060 units on a monthly and annual basis respectively.

More: Singapore Private Home Prices May Surge 20% This Year: Savills

“The market pick-up in May is mainly due to increased launches with five new private residential projects launched, accounting for 71 percent of the total launch volume, which in turn contributed to stronger sales performance during the month,” said Ong Teck Hui, national director of research and consultancy at JLL.

New project launches last month included Twin Vew in West Coast Vale, which released all of its 520 units, with 454 units sold at a median price of $1,385 psf. The 139-unit Amber45 at Amber Road launched 100 units, of which 86 were sold at a median price of $2,378 psf.

Sixteen35 Residences in Geylang released 60 units, with 45 units taken up at a median price of $1,511 psf. 120 Grange along Grange Road launched 50 units and held back six. Although it posted no sales last month, caveats show that there were 37 deals recorded at a median price of $3,141 psf. Lastly, Sea Pavilion Residences on Upper East Coast Road put up 24 units for sale, with 14 finding buyers at a median price of $1,852 psf.

The top-selling projects in May were Twin Vew and Amber45. Previously launched developments secured the remaining spots in the top five. They are Le Quest, which sold 73 units at a median price of $1,462 psf, The Tapestry (59 units at $1,388 psf) and Seaside Residences (59 units at $1,896 psf).

Ong pointed out that Twin Vew alone accounted for nearly 41 percent of new home sales in May, attributing the robust demand to its attractive price.

“In the current market, suburban projects priced around $1,400 psf have been achieving steady sales progress, even if they are not near MRT stations,” he said.

But he added that private home sales only amounted to 3,434 units from January to May 2018, down from 5,568 units in the same period last year. This means sales must pick up strongly in the second half of the year for it to match or surpass the 10,566 units sold for the whole of 2017.

Meanwhile, Huttons Asia research head Lee Sze Teck expects property developers to launch 800 to 1,200 units in June.

“These will include Affinity at Serangoon, Margaret Ville and The Garden Residences. For mega launches, developers will probably launch in phases to manage the options for buyers and allow leeway to increase prices in subsequent phases,” he said.

 

Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories, email romesh@propertyguru.com.sg