New launches boost November new home sales 23.2% m-o-m
First published on EdgeProp Singapore by Timothy Tay on 16 December 2019
SINGAPORE (EDGEPROP) - Based on the latest new private home sales statistics from URA, developers sold 1,147 new private residential homes (excluding executive condominiums or ECs) in November. This is a 23.2% m-o-m increase compared to the 931 units sold in October, and a fall of 4.5% y-o-y compared to the 1,201 units sold in November 2018.
Last month was also the fifth month this year that the number of new home sales has exceeded 1,000 units in the month, following March, July, August, and September sales. In 2018, only March, July, and November saw new home sales exceed 1,000 units. The first 11 months of this year recorded 9,547 new home sales (excluding ECs).
The top five best-selling new projects for the month of November this year were Sengkang Grand Residences, Parc Esta, One Holland Village Residences, Jadescape, and Parc Botannia.
The 680-unit Sengkang Grand Residences sold 235 units (34.6%) at a median price of $1,741 psf. The project was launched for sale on Nov 2, and is jointly developed by CapitaLand and City Developments.
The second best-selling project, the 1,399-unit Parc Esta by developer MCL Land, sold 102 units during the month at a median price of $1,685 psf. The condo was launched for sale last November and has sold 971 units (69.4%) to date.
Ismail Gafoor, CEO of PropNex Realty, says: “The attractiveness of newly launched projects such as Sengkang Grand Residences and One Holland Village Residences provided the added boost in drawing buyers and investors for the month of November. Existing projects that were previously launched, such as Parc Esta (launched in November 2018), Jadescape (launched in September 2018) and Parc Botannia (launched in November 2017), have continuously retained their desirability due to their attractive pricing.”
According to Christine Sun, head of research and consultancy at OrangeTee & Tie, developers are riding on the positive sales momentum to carry out a final burst of launch activities before the year-end holidays. A total of 740 new private homes were launched for sale last month, at projects such as Dairy Farm Residences, The Iveria, and Pullman Residences.
Sun adds that inbound capital may continue to enter Singapore’s property market next year, and there is an increasing pool of investors around the world who are diversifying their investment portfolios by location and sectors. Thus, Singapore will continue to be featured prominently as one of the top investment destinations, she says, adding that mortgage rates may remain low or fall next year, which may keep housing demand at current levels.
The month of December historically experiences a lull period as a result of the holiday season, says Gafoor, adding that PropNex expects close to 10,000 new private home sales will be achieved this year. “With an anticipated line-up of over 37 projects, we are expecting the momentum of buyers and investors to remain favourable in 2020 as well, with sales likely to be in the projection of 9,000 to 10,000 units,” he says.