Every month, The Urban Redevelopment Authority (URA) releases a comprehensive database of developer sales for private new homes. Ohmyhome analyses this huge chunk of data and picks out the most relevant points and trends for readers.
The month of May had the best performance for new home sales in 2022 so far, as developers sold a total of 1,356 units (excluding ECs), as compared to the 660 units transacted in April. This translated to a 105.5% (m-o-m) surge in new home sales. In addition, this is the highest number of units sold in a single month since November 2021.
New launches take center stage
The dynamic duo of Piccadilly Grand and Liv @ MB propelled new home sales to new heights for the month of May. Both these projects were able to attain more than 70% of sales during its launch weekend.
Piccadilly Grand was the best-selling project in the month of May, with a total of 318 units sold at a median price of $2,175 psf.
The project’s exceptional locational attributes and the recent announcement of the rejuvenation of the Farrer Park estate garnered interest from motivated buyers towards the project.
On the backdrop of the rejuvenation efforts in Farrer Park and the exceptional locational attributes, Piccadilly Grand managed to attract a steady stream of buyers and investors.
While Liv @ MB secured a total of 236 units sold at a median price of $2,405 psf. The closeness to the upcoming Katong Park MRT station and the appeal of District 15 likely served as catalyst for the success of Liv @ MB.
The attractive prices of both Liv @ MB and Piccadilly Grand accelerated demand for these projects. According to the data retrieved from URA realis, the sweet spot for buyers and investors were in the price range between $1 million to less than $2 million. Liv @ MB secured 53.0% of the sales and Piccadilly Grand had a total of 69.7% of the sales within this price range.
Highest number of units purchased by foreigners since Nov 2021
According to the numbers retrieved from URA Realis, a total of 84 units were purchased by foreigners. This was the highest number of units purchased by foreigners since November 2021, when there were a total of 78 units transacted.
Bulk purchases at Canninghill Piers and a shift in interest towards projects in the Rest of Central Region (RCR) attributed to the increase in units purchased by foreigners.
48 out of the 84 units (57.1%) purchased by foreigners were part of the Rest of the Central Region (RCR). Lack of new launches in the Core Central Region (CCR), have prompted buyers to pursue projects in the RCR segment in recent months.
Economic headwinds, global inflationary pressures and the volatility of stocks likely have spurred foreign buyers and investors to weather the storm in Singapore’s property market.
Generally, Singapore’s reputation as a safe regional hub has been a draw for wealthy foreign buyers. Singapore’s accelerated efforts to transition towards endemic living has positioned the nation as an optimal destination for such foreign buyers and investors.
Although new home sales appear to be stabilizing and reached a new high in May, it is a far cry from the 5,658 units transacted in the first 5 months of 2021. As a total of 3,834 units were transacted in the first 5 months of 2022, reflecting a 32.2% drop in the number of units that were sold.
The general optimism of developers will likely turn the corner. This is due in part to the success of Liv @ MB and Piccadilly Grand. As more developers would be hoping to replicate the success of these projects and capture lightning in a bottle, against the backdrop of property cooling measures, inflationary pressures, rising interest rates, and global uncertainties.
With the addition of new launches such as Amo Residence that is expected to come on stream, we can expect sales at desirable locations with attractive pricing to continue to pick up.
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