New home sales surged to an 11-month high in August and marked the fourth consecutive monthly increase against a backdrop of the pandemic and global economic slowdown, according to data from the Urban Redevelopment Authority (URA).
In a recent survey, results showed that new home sales, excluding executive condominiums (EC), skyrocketed 16.3% Month 0n Month (MoM) to 1,256 units in August 2020, from 1,080 units in July 2020. This is a good background for Penrose condo to launch next month.
This records the highest sales volume achieved since the 1,270 units sold in September 2019, noted Miss Christine Sun, head of research and consultancy at OrangeTee & Tie.
As compared to August 2019, new home transactions jumped 11.8%.
In the mean time, domestic demand formed 84.4% of all new non-landed home transactions (1,240 units) in August. This marks the highest number of Singaporean purchases in more than 2 years.
Private homes in the outside central region (OCR) and rest of central region (RCR) continue to be the bulk of purchases last month, said Miss Sun. OCR made up 40.3% of the volume while RCR, the zone in which One North Eden location is sited, made up 49.5% of the sales. The rest accounting for 10.2% came from the core central region (CCR).
The volatility of equity markets and ongoing pandemic may be pushing the surge in new home sales, based on Miss Sun.
“The volatile equity markets and rising economic uncertainties appear to be fuelling the boom in real estate as more purchasers look for shelter for safe-haven assets. Investors have the tendency to divert from cash holdings and riskier investments towards real estate assets for wealth preservation,” she mentioned.
“Moreover, record-low interest rates are fuelling the property market’s rebound as mortgages are today increasingly affordable for both property investors and owner-occupiers,” added Miss Sun.
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