This is Singapore’s strongest monthly rebound in six months, reflecting a resilient market, particularly as buyers begin to anticipate the easing of pandemic restrictions.
On Monday, data from the Urban Redevelopment Authority showed 1,589 new private units were purchased during July, up 82% over June. There’s been an increase of 1,633 homes sales since January, after a three-month slide due to virus restrictions.
Despite Singapore’s rebounding home sales like 1953, whose first-half sales reached $24 billion, twice what Manhattan sold during the first half, the city state’s property frenzy is likely to continue. With its more recent emphasis on living with viruses rather than eliminating them, the government plans to ease further virus restrictions.
Singapore is experiencing a jump in home sales due to buyers rushing to buy out of fear of being priced out, said Christine Sun, senior vice president of Orange Tee & Tie’s research & analytics department.
According to her, buyers are also upgrading from public apartments to private units in the suburbs.
In May, authorities implemented stricter virus controls, which only started to ease now as vaccination rates reached one of the highest levels on record.
Recent Home Sale Rebound Singapore Property Market
In 2Q2021, Singapore’s residential market grew by 96.4% quarter-on-quarter to S$3.1 billion (RM9.63 billion), driven by strong government land auctions and positive interest in both resale and new launches. Colliers predicts a rebound this year for private property sales through collective sales.
As well, the number of shophouse transactions in the last quarter rebounded by 132% year-on-year to S$310 million, after the sector declined by 53.6% year-on-year in Q12021. As a result of several significant deals, commercial sales grew by 24% q-o-q.
Colliers reported a 105% increase in industrial investment sales in the second quarter of this year, which amounted to S$2 billion. The industrial property market is expected to grow over the next few decades in warehouses, data centers, and high-end buildings.
Investment transactions in regional offices reached $15,5 billion in 2Q2021. Australia’s CBD office markets were buoyed by positive net absorption, while Singapore and Shanghai showed a more positive outlook.
According to Regina Lim, head of capital markets research for the Asia Pacific at JLL, “we expect logistics and industrial investments to double to US$50 billion to US$60 billion by 2025,” she says.
She expects total investment volume to rise for the entire 2021 period by 15% to 20%.
In July, new home sales included existing homes by 81.3% more than 962 units sold in the previous month. As reported by the URA, new sales excluding ECs increased 46.7% from a year ago.
On July 22 through August 10, Singapore tightened Covid-19 restrictions, reducing the number of house viewings and visitors allowed at sales galleries. The market was not dampened, however. After 1,633 units were sold in January, July’s number represents the highest number up to date.
July was the best month for OCR
The Outside Central Region (OCR) accounted for 63.7% of all home purchases, excluding ECs. In the Rest of Central Region (RCR), sales accounted for 27.6% of total sales, while in the Core Central Region (CCR), 8.7% of total sales were generated.
Sales at Pasir Ris 8 in the OCR were most prevalent, with 418 of the 487 units moving at a median price of $1,624 psf in July, the first month the project was available. After its launch day, the developer had to raise prices repeatedly to meet demand. (See: Browse condos that have just been launched in Singapore)
The project’s “affordable price quantum” remains attributed to its good sales response despite price hikes. The median price per square foot at this development was 1,614 for the 418 units sold in July, according to Cushman & Wakefield research head Wong Xian Yang.
There was a spillover effect to other projects in the OCR due to the favourable reception and the price revisions to $2,000 psf at Pasir Ris 8. PropNex Realty CEO Ismail Gafoor says some OCR projects achieved greater sales in July than in previous months this year.
Moreover, 125 units were sold at Normanton Park, marking the property’s strongest sales month since it opened in January, notes PropNex. 33% more sales were recorded in July than in June.
CCR sales were down 32.5% from last month to 139 new homes in July. Leedon Green sold 33 units at $2,559psf, the highest price paid for a CCR project in August.
The residential market in the private sector experienced an increase in sales last month as buyers returned in droves. Fearing being priced out, some bought units as quickly as they could. OrangeTee & Tie’s senior vice president of research & analytics, Christine Sun, co-authored a recent blog post saying that overall prices may have bottomed out.
Despite the lack of new EC launches in July, developers transacted 155 new EC units, a 72% increase from the 90 new EC transactions in June. It sold 52 units at a median price of $1,168 per square foot, making it the best-selling project in EC.