Every quarter, The Urban Redevelopment Authority (URA) releases a comprehensive database of price indices and sales volume for the various segments of private housing such as resale and new home sales. Ohmyhome analyses this huge chunk of data and picks out the most relevant points and trends for readers.
Private new home sales: Pasir Ris 8 moved 425 units
On a quarterly basis, the number of transactions in the third quarter of 2021 increased to 3,550 units as compared to 2,966 units in the second quarter – accounting for a 19.7% (q-o-q) change.
Newly launched projects in 3Q21 such as Pasir Ris 8 and The Watergardens at Canberra boosted the sales volume for the quarter. In first place was Pasir Ris 8 with a total of 425 transactions in 3Q21, at an average price of $1,617 psf. Trailing closely was Normanton Park (launched in January), which had 320 units transacted at an average price of $1,821 psf.
Overall private new home sales transacted in the first 9 months of 2021 was 35.6% higher than in the same time period in 2020. Unsurprisingly, new home sales have already surpassed the 2020 sales volume by 0.3%.
EC transactions: Parc Greenwich was best-selling project for Q3
The number of EC units that have been launched gradually increased in the past few years, as this is due to projects from past land tenders coming on the market. A total of 1,609 units were launched in the first 9 months of 2021, primarily from the projects Parc Greenwich, Parc Central Residences and Provence Residence.
Typically, EC developers have to wait 15 months after they acquire the land parcel before they are able to launch the EC project for sale. The 3 EC project launches this year were from the government land sales from 2019 and early 2020s. A total of 1,859 units were transacted in the first 9 months of 2021, an incredible 94.1% increase as compared to the whole of 2020.
Parc Greenwich was the best selling project in 3Q21 for the EC segment. But among the 3 new EC launches this year, in terms of take-up rates, Parc Central Residences achieved the highest 95.9% units sold to-date.
Private resale transactions already outpaced 2020 by 41.8%
On a quarterly basis, the number of transactions in the third quarter of 2021 rose marginally to 5,362 units as compared to 5,333 units in the second quarter – a mere 0.5% (q-o-q) change. This is due to the tightened safe management measures that have been in place since September 27. These tightened measures meant that physical property viewings are only allowed for up to two distinct persons a day.
Overall private resale units transacted for the first 9 months of 2021 have already outpaced the whole year of 2020 by 41.8%, with a total of 15,214 resale transactions.
More buyers started diverting their interest toward the private resale market in the first 9 months of the year due to several factors. These are primarily attributed to uncertainties in the construction market, with manpower crunch and materials supply disruptions brought on by Covid-19. This has subsequently led to delays in project completion as well.
The private resale market was buoyant with HDB upgraders looking to purchase a private resale property. According to the data retrieved from URA Realis, there has been a significant surge in the number of buyers with a HDB address purchasing a private resale residential unit.
In the first 9 months of 2021, a total of 4,268 private resale units were acquired by buyers with a HDB address, substantially higher than the 1,924 units in the same time period in 2020. That’s an incredible 121.8% growth year-on-year.
In the above table we break down the 3Q21 resale transactions, and find out that HDB upgraders were concentrated in the price range of up to $1.5 million. This accounted for 74.8% of the total resale transactions for HDB upgraders in 3Q21.
The most popular private resale project among HDB upgraders was High Park Residences, which amassed 21 units at an average price of $1,292 psf. Closely trailing was Parc Rosewood, which generated 20 units at an average price of $1,072 psf.
Private home prices: $26.3M unit sold at Le Nouvel Ardmore
In 3Q21, the price index had a change of 1.1%(q-o-q). With overall home prices reaching 5.3% exceeding the overall price change of 2.2% in 2020. As prices in RCR grew by 2.6% in the third quarter. This can be attributed to a higher number of transactions in RCR for the first 9 months of the year, with 3,992 units transacted. Essentially, a 21.0% increase as compared to the same period in 2020.
Le Nouvel Ardmore had the highest transacted price in the third quarter at $26.3 million, translating to a unit price of $4,906 psf. This is the highest resale unit price recorded for the development.
Foreign buyers: Vaccinated Travel Lane ushers in more investors
Based on the data retrieved from URA Realis, the number of private properties purchased by foreigners has increased in the third quarter of this year –specifically a 12.6% increase from 127 transactions in 2Q21 to 142 transactions in 3Q21. This comes as no surprise, with Singapore extending its Vaccinated Travel Lane (VTL) scheme to more countries. More foreign property buyers and investors might cherish this opportunity to lap up some shortlisted properties.
Outlook for Q4 of 2021
Singapore’s GDP growth moderated by 6.5% in the 3rd quarter of 2021. This was in line with the expectations of the economists, as a result of tightened Covid-19 restrictions that are in place.
With the recent announcement of the stabilization phase extended until November 21 and a decreasing number of unsold units, developers may have to time their new launches with the year coming to a close. With upcoming projects such as 696-unit Canninghill Piers and 132-unit Amber Sea on the way as well.
However, with the successful take-up rate of Jervois Mansion, the resiliency of the new home sales segment can be expected to continue. We can expect overall new home sales to reach in the range of 11,500 – 12,500 units. With more interest from HDB upgraders in the private resale market – we can expect the overall private resale segment to be in the range of 16,000 – 17,500 units.
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