Source: Ohmyhome Research, URA
New private home sales rose by 3.5% (m-o-m) in January as Belgravia Ace and past new project launches spurred demand for new home sales. A total of 673 units (excluding ECs) were transacted, as compared to the 650 units in December.
42.9% of the units sold in January were in the Rest of Central Region (RCR). Developers sold 289 units in this region. The Outside Central Region (OCR) accounted for 40.9%, while the Core Central Region (CCR) contributed 16.2% of the total sales volume.
Developers launched a total of 178 units in January that included Belgravia Ace and Ikigai (No Units Sold in January). Due to the lack of major new project launches, previously launched projects formed the bulk of sales with 88.6% of the units transacted.
Normanton Park remains as the best-seller
The top selling project for the month of January was Normanton Park, which sold 94 units at a median price of $1,841 psf. One year since its launch, Normanton Park continues to garner interest. Over 85% of units have been transacted so far.
The second best-selling project was Belgravia Ace. The first new landed development launch of the year, had a praiseworthy performance, with 77 units sold at a median price of $1,080 psf. Newly launched freehold landed properties are a rarity. Hence, demand for these properties was robust.
Among the top 10 projects, Kent Ridge Hill Residences had the highest median price increase between December and January. Growing from a median price of $1,578 psf in December 2021 to $1,858 psf in January 2022. A 17.7% increase in median unit prices, as renewed interest in the project continues to boost value.
In addition, Pasir Ris 8 had the lowest median price drop of 18%, declining from $1,984 psf in December 2021 to $1,625 psf in January 2022.
More buyers purchasing above the $3 million mark
There were more buyers acquiring properties above the $3 million mark in January as compared to the previous month. About 23.9% of the new home sales in January were in the price range of $3 million and above as compared to the 9.3% of buyers in the same price range in December.
It is likely that these are buyers with ample liquidity and wealth who are undeterred by the higher ABSD rates.
Although the highest transacted price in January was for Park Nova at a price of $10.4 million ($4,748 psf), it was significantly lower than the highest transacted price in December for Les Maisons Nassim at a price of $37 million ($5,672 psf).
Creditable new home sales by foreigners in January
The ABSD rates for foreigners were raised from 20% to 30% in December. There was a marginal rise in the number of transactions by foreigners, increasing from 22 units sold in December to 28 units transacted in January.
About 42.9% purchased new homes in the price range of $3 million and above as compared to the 31.8% of the foreign buyers in the same price range in December. High net worth foreigners are unlikely to be deterred by the increase in ABSD rates.
Outlook
It is likely sales will be tapered in February due to the Chinese New Year festivities and developers may hold off new launches.
Developers are likely to space out their project launches and intermittently release units over several months as a result of a dwindling inventory of unsold units, presence of cooling measures and rising interest rates.
However, with recovering economic sentiments, Singapore’s on-going efforts towards the further opening of the vaccinated travel lanes (VTLs) and over 64% of the population receiving the booster shots, we expect demand for new private home sales to remain favorable.
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Header Image: The Straits Times
