New home sales in Singapore for August surprise with 16% rise m-o-m

15 Sep 2020
Property News
condo CMG 1
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. PHOTO: CMG

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."
Concierge
combines advanced technology with personalized service to help you achieve your property goals.