New residential property sales spiked 104.9%, not including executive condominiums (EC), to 998 units in June 2020 from the earlier 487 units in May, based on the property developers’ monthly transaction data by Urban Redevelopment Authority (URA). Including executive condominiums (EC), sales surged 102.2% to 1,031 units over the same time frame.
This is declared to be the highest in 7 years as the private home market rebounds at a faster pace, after recording a surprise reversal in the earlier month.
OrangeTee & Tie’s head of research & consultancy, Miss Christine Sun, notes that June’s sales volume hike was broad-based across all property market sectors.
The figures of new homes excluding ECs sold in Rest of Central Region (RCR) jumped 127.5% MoM to 430 units in June 2020, whilst those in Outside Central Region (OCR) hiked 90.3% to 489 units, and properties in Core Central Region (CCR) climbed 92.7% to 79 units over the same time frame.
Further, Kopar at Newton retained its top position as the best selling project in CCR with 25 transactions, whilst other luxury projects like Fourth Avenue Residences, Royalgreen, Leedon Green, Boulevard 88, Van Holland and The Avenir units continue to change hands despite the pandemic.
Miss Sun adds that sales spiked further after showflats were permitted to reopen after the circuit breaker ended. According to URA realis data, the figures of private residences excluding ECs sold at $2m and above increased to 129 units in June 2020 from the earlier 23 units that happened in May.
Research director at Huttons Asia, Mr Lee Sze Teck, estimates up to 20 new developments or about 6,000 units will be launched in the second half of the year, with Clavon Clementi being a limelight, and the property market may see transactions of between 8,000 and 8,500 units for the entire 2020.
“Economists concur that the worst is behind us and recovery is on the cards. The strong resilience of the market and real estate as an endearing asset class within investors will promote sales in the market,” added Mr Lee.
In the mean time, in terms of percentage to the entire sales figures (excluding ECs), 13% of new abodes were sold at $2 million and above in June 2020, as compared to only 5% in May. Furthermore, 32 private residences were sold at $3 million and above while 2 new homes were transacted above $10 million, including a 257 square meter unit at Boulevard 88, and a 504 square meter unit at 15 Holland Hill.
Foreign purchasers returned to the real estate market after the Circuit Breaker, according to Miss Sun as URA realis data showed that the number of non-landed abodes bought by foreign purchasers increased significantly last month. This is the target the One-North Eden Developer has in mind as well.
Non-permanent residents (NPR) purchased 49 non-landed private abodes in June 2020, a steep incline from the 14 units sold in May and more than the 33 units sold in June 2019. The figures of non-landed residences bought by Singapore permanent residents (PR) has jumped to 120 units in June 2020 from the 56 units in May too, more than the 86 units sold in June 2019.
“Many foreigners have purchased properties in June as the increasing macro-economic uncertainties have driven more foreign investors to look for shelter in safe-haven assets here,” said Miss Sun. Even though showflats were opened again last month, more foreign purchasers buying private residences remotely were noticed in contrast to before, where many foreigners generally buy a unit only after going to the showflat.
Miss Sun added that today, many foreigners picked up homes in Singapore according on their trust in the quality of finishes, investment potential of properties and our legal system. More foreigners are predicted to snap up private homes in the following months, as the interest rates are anticipated to stay low and more than enough liquidity is flowing into the asset markets because of the massive quantitative easing programmes started all around the globe.
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