Check related article: On April 24, a 1,475-square-foot unit at The Marbella sold for $3.5 million
As of the month April developers have sold 887 brand new residential residences (excluding executive condominiums, also known as ECs) according to figures published from URA the 15th of May. The figure represents an increase in the range of 80.3% m-o-m and 37% year-over-year. This is also the 4th consecutive month with growth, and the most significant monthly sales since September 2022, when 987 new homes for sale were sold.
The increased sales are on the after 2 major launch launches within the Rest of Central Region (RCR) in the last month -the 638-unit Tembusu Grand development by City Developments Ltd (CDL) and MCL Land along Jalan Tembusu as well as the 275-unit Blossoms in the Park EL Development along Slim Barracks Rise.
Tembusu Grand, which launched on auction on the 8th of April, sold three hundred and fifty-four units (56%) at a median price of $2,463 per square foot this month. Blossoms in the Park that went on sale April 29 was sold out of 205 (74.5%) at a median price of $2.427 psf. This was the first launch of sales after the announcement of the most recent property cooling measures, which went into effect on the 27th of April.
Together both projects together accounted for 559 units, which is 63% of the sales in April. RCR projects comprised the majority of private home sales in April which included 628 homes sold within the region. “The 628 units that were sold in the RCR was the highest number of units sold in this market in the last the last 11 years (since the market closed in 2022 with 893 homes),” observes Wong Siew Ying who is the head of content and research of PropNex Realty.
In addition to Tembusu Grand and Blossoms by the Park Other RCR projects included among the projects that had the most sales included CDL as well as MCL Land’s Piccadilly Grand on Northumberland Road that sold 14 units for the median price of $2,045 per square foot. Riviere, a condominium that is owned by Frasers Property on Jiak Kim Street which was last 10 units sold for the median price of $2,954 per square foot.
The Core Central Region (CCR) the CCR, 208 private homes have been sold during April which is 23% of all sales. The most popular CCR project in April is The Atelier, Bukit Sembawang Estates The 120-unit freehold project located on Makeway Avenue, where 46 units were sold for the median price of $2,658 per sq ft. Leedon Green and Pullman Residences Newton were next by selling 19 units for each for a median cost of $2,838 per square foot and $3,215 per sq ft, respectively.
Lee Sze Teck, senior director of research at Huttons Asia, notes that the CCR new home sales are among the highest since August 2022. They come due to increased home purchases made by foreigners. In April buyers from abroad buyers buying new homes almost doubled to 70. This is the highest amount of similar purchases since 2022’s May. “Geopolitical tensions could have led to more foreigners purchasing properties that are safe and secure, such as Singapore,” Lee adds.
The Outside Central Region (OCR) only sold 51 units in April, an increase of more than 78% over the course of a month, driven by the absence of any new launches and the limited availability of un-sold inventory. Top sellers in the region include The Botany at Dairy Farm (12 units sold for the median price of $2,087) along with Gazania. Gazania (10 units that were sold for the median price of $1,755 per pound).
In the EC segment the EC segment, 22 units were delivered in April. That’s which is on similar to the 21 units that were sold in March. The sales were dominated by North Gaia, with the Yishun EC moving 18 units at a median cost of $1,271 per square foot.
Effect of cooling measures
PropNex’s Wong emphasizes that there have been new launches have taken place since the latest cooling measures went into effectin particular Blossoms at the Park as well as The Continuum which is a 816-unit freehold condo developed by Hoi Hup Realty as well as Sunway Property on Thiam Siew Avenue -which have managed to achieve profitable sales of more than 200 units every. The Continuum was launched on the 6th of May, recorded 206 (27%) units sold over the course of its opening weekend, with an average of $2,732 per square foot.
Additionally, Wong points out that despite the fact that the rate of increase for the additional buyer’s tax (ABSD) rate for foreign buyers up to 60%, Blossoms by the Park was able to acquire eight units by foreigners. The Continuum saw one. In all, foreign buyers represented 8% of all sales in April, which was the same as the previous month.
However, Wong believes that foreign demand for homes may slow over the next couple of months when foreign buyers evaluate the new rules. “It is not quite the time and we’re not sure, but that the ABSD rate hike is likely to have a positive effect on the demand for foreign investment,” she adds. This could cause a decline in foreign investment demand, particularly in the CCR where we tend to attract greater interest from foreign investors.
However, Huttons’ Lee believes that the foreign demand for the luxury housing market in Singapore remains strong. “Interest hasn’t slowed in any significant way since those cooling policies. Foreigners are still scheduling appointments to see luxurious houses,” he says.
Eugene Lim, key executive officer and head of market research and information for ERA Realty Network, concurs and says that buyers remain attracted by Singapore’s stability in government and its robust currency. “For wealthy foreign buyers that are wealthy, they might eventually take a look at the overall costs associated with property owning for Singapore (which comprises the property cost including buyer’s stamp duty, ABSD) instead of focus on the very high ABSD price,” he opines.
In any event, new homes sales over the next month are likely to be driven by the demand for homebuying from both locals as well as Singapore long-term residents. “New home sales in the month of May 2023 will be healthy due to the anticipated announcement of The Reserve Residences (the 732-unit condominium developed that is owned by Far East Organization and Sino Group located at Jalan Anak Bukit) attracted a great deal of interest,” predicts PropNex’s Wong.