DESPITE economic headwinds and the Hungry Ghost Festival, developers in Singapore sold 1,256 private homes in August, 16 per cent higher than July's take-up.

There were also more units launched by developers in August as 1,582 units were released, of which 109 were in the Core Central Region (CCR), 821 in Rest of the Central Region (RCR), and 652 were Outside the Central Region (OCR).

In comparison, 82 per cent fewer units were launched for sale in July as Singapore progressively emerged from the "circuit breaker". There were also about 56 per cent more units released in August compared to the corresponding month a year ago when 1,015 units were released.

The figures - which were released by the Urban Redevelopment Authority (URA) on Tuesday based on its survey of licensed housing developers - exclude executive condominium (EC) units, which are a public-private housing hybrid.

Including ECs, developers moved 1,307 units in August, up 14 per cent from 1,142 units in July and 12 per cent higher than the 1,168 units sold in August last year.

Christine Sun, head of research at OrangeTee & Tie, said: "The property market bucked the trend with higher new home sales inked in August, (as) market activity typically tends to slow during the seventh lunar month. New home sales rose 'higher and quicker' than expected after the "circuit-breaker" period, which upended sales in April and May (when there were) showflat closures." The sales for new homes last month hit an 11-month high as well as a fourth consecutive monthly increase amid the Covid-19 pandemic and global economic slowdown, she went on to point out.

"Sales in the RCR were propped up by the launch of Forett@Bukit Timah and Noma," noted Lee Sze Teck, director (research) at Huttons Asia.

August's take-up in the RCR (excluding ECs) stood at 622 units, versus 128 units in CCR and 506 units in OCR.

Commenting on the figures for the month of August, Mr Lee added: "Possible reasons for the strong set of numbers could be down to genuine buying demand generated by the low interest rate environment, lack of alternative stable investment asset, and the fear of missing out."

PENT-up demand continues to drive new home sales with 1,227 units sold in Singapore in August, an 11-month high with confident buyers pushing prices upwards amid worsening economic conditions and rising unemployment.

The high number of transactions surprised some because it was also the Hungry Ghost month, but it got an extra lift from Forett At Bukit Timah, a freehold development that was launched on Aug 8 - the first private residential project launch since the "circuit breaker" ended on June 1. A total of 212 units have been sold as of Aug 31.

According to URA Realis data, August's new home sales of 1,227 (excluding executive condominiums, or ECs) is the highest since September's 2019's 1,270, said Christine Sun, OrangeTee & Tie, head of research and consultancy.

It is also up 13.6 per cent year-on-year and 9.3 per cent over July's 1,080. Including ECs, 1,276 units were sold in August.

"Backed by pent-up demand, we had anticipated that August's new home sales could match the 1,080 units sold in July, or perhaps just moderate slightly given that market activity is typically slower during the Hungry Ghost month (which started on Aug 19)," said Wong Siew Ying, PropNex head of research and content. "Hence, the 1,227 caveats posted in August has surprised on the upside."

The property market is behaving like the equity market - it seems divorced from the wider economy - as buyers snap up all viewing appointments at sale galleries while thousands of people have lose their jobs.

Singapore's gross domestic product is expected to shrink 6 per cent this year, according to private sector economists polled by the Monetary Authority of Singapore.

Ministry of Manpower figures showed overall retrenchments - including citizens and non-citizens - of 6,700 in the second quarter and 3,220 in the first quarter.

This was higher than the peak of 5,510 during the 2003 Sars outbreak, but below the 2009 global financial crisis high of 12,760. More job losses are expected to come.

Labour chief Ng Chee Meng last month said he expects job losses to rise in the next six to 12 months as the economic impact of pandemic becomes more widely felt.

"Last month's new home sales defied gravity amid the pandemic, rising unemployment rate, Hungry Ghost month and cooling measures," said Ms Sun.

New home sales seem to be driven by domestic demand where Singaporeans formed the bulk of purchasers (84.7 per cent) for the 1,223 new non-landed private homes sold last month, she noted.

For many Singaporeans, residential properties may still be a "safer bet" especially for investors who are looking for stable returns during times of economic uncertainty.

"Properties in Singapore generally have a good track record of yielding attractive capital appreciation over the past 30 years, especially for new projects that are well-located, possess good product attributes and built by renown developers," said Ms Sun. "The low-interest rates have also provided some support for the property market as the borrowing cost or mortgages are now more affordable for new borrowers."

Evan Chung, the head of Knight Frank's property network, said the profile of buyers fit that of mostly "needs-based" purchasers. These include buyers who sold their properties and are now in need of a new home and those getting married in the coming months, or whose weddings have been pushed back due to the pandemic.

"The second factor driving the sentiment on the ground stems from the fear of missing out," added Mr Chung.

Purchasers deem that the risk of price increases is greater than the risk of price declines for Singapore properties, and that they could possibly miss out on an eventual upswing in asset values that have historically followed after every recession, he noted, pointing out: "As such, sales activity quickly picks up upon word of discounts and promotions by developers."

Propping up the market again are HDB upgraders who buy in the more affordable city fringe and mass-market segments.

Drilling further into the data, buyers in August went for the more costly homes in the Rest of Central Region (RCR) pushing the share to 49.2 per cent or 604 units.

The OCR (Outside Central Region) accounted for 40.5 per cent or 497 new homes sales (excluding ECs). The expensive Core Central Region made up the remaining 10.3 per cent or 126 homes sold.

RCR's volume of 49.2 per cent is the highest since September 2019 when RCR formed 58.7 per cent of the total new home sales (excluding ECs).

Buyers are also willing to pay more, as seen by the higher median prices on a per sq foot (psf) basis in August over that of July.

The estimated median unit prices on a psf in August have all increased across the top nine projects when compared with July's median unit price, with the highest gain of 4.6 per cent at the Daintree Residence.

"Most best-seller projects have seen a gradual upward trend in pricing this year," said Lam Chern Woon, Edmund Tie senior director, research and consulting.

Added PropNex's Ms Wong: "Apart from Forett At Bukit Timah, which was launched in August, most of the top 10 best-selling projects in August had higher median transacted psf price compared to their respective median launch price."

Whistler Grand sold 51 units in August at a median price of S$1,558 psf, up 14.6 per cent from its launch price of S$1,360 psf. It was launched in November 2018.

But two of the top 10 - The Garden Residences and The Woodleigh Residences - saw declines of 5.3 per cent and 5.6 per cent respectively in their median psf. Against July's psf price, The Garden Residences and The Woodleigh Residences managed a small uptick - up 0.3 per cent and one per cent respectively.

A 99-YEAR leasehold condominium jointly developed by Hong Leong Holdings and City Developments Limited will begin previews by appointment from Sept 12, Hong Leong Group said in a statement on Wednesday.

This is Hong Leong Group's first project to be launched this year.

Early-bird prices for Penrose condominium, which is located at Sims Drive in District 14, start from S$788,000 for units with one bedroom, S$943,000 for those with two bedrooms, S$1.33 million for three bedrooms and S$2.11 million for four bedrooms.

The development comprises five 18-storey towers housing 566 units. Sizes of one-bedroom units start from 474 square feet (sq ft), 646 sq ft for two-bedroom units, 936 sq ft for three-bedroom units, and 1,389 sq ft for four-bedroom units.

In terms of per square foot (psf), one-bedroom units start from S$1,662 psf, two bedroom units from S$1,460 psf, three-bedders from S$1,421 psf and four bedroom units from S$1,519 psf.

The temporary occupation permit is expected to be obtained in July 2024, Hong Leong Group said.

Facilities at Penrose condominium include a childcare centre, 50-metre swimming pool, wellness gardens, a rooftop sky garden with unblocked views, as well as a pavilion for social gatherings and a treehouse pavilion.

The development is about a 15-minute drive from the central business district and Orchard Road, and a six-minute walk to Aljunied MRT station. The neighbourhood is also linked to other parts of Singapore by the Pan Island Expressway and the Kallang-Paya Lebar Expressway.

Geylang Methodist School and Canossa Catholic Primary School are a five-minute and 15-minute walk away respectively.

Nearby hawker centres include Sims Vista Market & Food Centre, Haig Road Market & Cooked Food Centre and Old Airport Road Food Centre.

There are cafes and restaurants in the neighbouring Katong and Joo Chiat districts, as well as shopping malls nearby, including Paya Lebar Quarter and Kallang Wave Mall.

Penrose condominium is also "well-positioned" to tap new growth areas, Hong Leong Group said. These include Kampong Bugis and the Kallang River precinct. The latter will see a rejuvenation of the waterfront with new walkways and cycling routes.

Hong Leong Holdings' head of sales and marketing Betsy Chng said the project is "well-priced and within the reach of most Singaporeans looking to invest or simply to buy a beautiful and functional home to stay".

The Penrose condominium sales gallery is located along Geylang Road, with vehicle access via Kallang Airport Drive.

ERA Realty's head of research and consultancy Nicholas Mak pointed out that there are no new, major launches in the same vicinity as Penrose for sale. ERA is one of the marketing agents for the project.

Other projects being marketed in district 14 is the 99-year leasehold, 265-unit The Antares at Mattar Road and freehold development Tedge at Changi Road.

The average price for transactions over June-August for The Antares was S$1,769 psf, while Tedge sold eight of its 42 units at an average price of S$1,603 psf, Mr Mak noted.

Another recent freehold launch in district 14 is the 50-unit development NoMa along Guillemard Road, which was launched late August. Under the early bird promotion, the one-bedroom units, which range in size from 388-463 sq ft, were understood to have started from S$600,000, while the two-bedroom units, which are sized from 603-850 sq ft, started from S$900,000. The four-bedroom units (1,163 sq ft- 1,335 sq ft) were priced under S$2 million.