Increase In Private Home Sales Amid Uncertainty

Data released by the Urban Redevelopment Authority (URA) shows that 618 new private residential units, excluding executive condominiums (ECs) were sold last month, an increase of 14.9% m-o-m compared to 538 units sold in December last year and 41.4% higher than the 437 units developers sold a year during the same period. This is the best January private home sales figure in seven years. 

Two of the three top-performing projects are located Outside of Central Region (OCR). They are the 1,206-unit Jadescape which sold 56 units at a median price of S$1,690 psf. and Treasure At Tampines which moved 50 units with an average price of S$1,371 psf. The third project is Parc Esta, located in Rest of Central Region (RCR), which sold 44 units at about S$1,684 psf. 42% of the new home sales come from the RCR, 37% from OCR and only 21% of the new home sales in from the Core Central Region (CCR).

Developers launched 598 new homes in January from three new projects and other ongoing projects. The three new projects, namely Leedon Green, The Avenir and Van Holland are all located in the CCR. More potential new launches are expected to come from the CCR such as Cairnhill 16 in prime district 10, Hyll on Holland and The M at Middle Road.

Due to uncertainty of where the economy is heading and the ongoing Covid-19 outbreak, there could be some moderation to the volume of transactions in the short term. New sales in Q1 2020 could be as lower than the 1,838 units sold in Q1 2019 as some developers may delay launches till there is better clarity on the current situation. Home prices are likely to remain stable in Q1 2020, but may see weakness in Q2 if the current health advisory are not lifted and sales remain tepid.