New Homes Sales Soar To 15 Months High

Home sales peak at 15-month high

new homes sales

With the continued strong public demand for home units, the market for new private homes reached a 15-month high in October.

According to the Urban Redevelopment Authority (URA), developers sold a total of 1,252 units at newly launched projects in October.

This figure, reported to the URA, is more than double the September sales figure which sat at 509 units sold. It was also recorded to be the highest in monthly sales since July last year, where 1,655 units were successfully moved in the market.

Despite coming in the heels of the property cooling measures and a weak economic outlook, sales for new private homes is nevertheless up by 128% from last October.

PropNex Realty attributes this spike to a combination of more new units up for sale and reasonable prices.

“More new units launched for sale and reasonable prices in the increasingly price-sensitive market drew bargain-hunting home buyers back to the show flats,” said PropNex Realty chief executive Ismail Gafooor.

Meanwhile, Desmond Sim of CBRE Research for Singapore and Southeast Asia noted that buyers are motivated by value buys in terms of “competitive pricing and palatable quantum”.

“Smaller units seem to be gaining the most traction,” Sim said.

Among the top-selling projects launched in October were the City Developments’ Forest Woods in Serangoon Central, and MCC Land’s the Alps Residences in the Tampines. Sales for these two projects comprised a whopping 55.7 percent of all sales.

The Forest Woods moved 364 units at median price of $ 1,412 per square foot. These units included one-bedders with study and a variety of two-bedroom apartments. Meanwhile, the Alps Residences successfully sold 334 units, many of which were one and two-bedders, at a median price of $ 1,078 per square foot.

Shoebox apartments continue to be a big draw for investors and home-owners, said Alan Cheong of Savills Singapore. This is because shoebox apartments generate “decent” average yields of 3.3 per cent in both the city fringe and suburban areas.

The URA reported 58 new private homes sold at the core central region. Meanwhile, 151 units were sold in the city fringe and 1,043 units in the suburbs.

Aside from Forest Woods and The Alps Residences, housing projects that were launched earlier are also seeing an increase in sales. Among these projects were Stars of Kovan, The Trilinq, the Kingsford Waterbay, each successfully selling 30 units each.

Analysts also forecast a robust market for new home sales in the coming months with the launch of the Queens Peak in Queenstown and the Parc Riviera in West Coast Vale.