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New private home sales in September hit a 14-month high, rising to its highest level since July 2018 as developers revved up launches after the Hungry Ghost Month. According to the developers’ sales survey by the Urban Redevelopment Authority (URA), new home sales excluding executive condominiums (EC) surged 13.1 per cent month-on-month (m-o-m) to 1,270 units last month. This is 1.4 times the 932 units moved in September 2018. It is also the largest number of new homes sold in the month of September in the last seven years (the previous record was in September 2012 with 2,621 new home sales).
The strong transaction volume was boosted by the new launch of Avenue South Residence and robust sales at various projects that were launched earlier. A number of new projects were also launched last month including Meyer Mansion, The Antares, Uptown @ Farrer, and Cuscaden Reserve. Many projects posted double- or triple-digit sales last month such as Avenue South Residence (361 units), Parc Clematis (119 units), Parc Botannia (71 units), Treasure at Tampines (69 units), The Florence Residences (68 units) and Parc Esta (65 units). Due to the launch of Avenue South Residence and good sales at some mid-tier projects, the proportion of new home sales in the Rest of Central Region (RCR) is 58.7 per cent, which is much higher than the 27.1 per cent in the prevailing month.
Last month’s sales were largely driven by locals where Singaporeans and Singapore Permanent Residents (PR) accounted for almost 95 per cent of the new sales volume (landed + non-landed excluding EC). According to URA Realis data downloaded on 15 October 2019, the number of Singaporean purchases rose 29.3 per cent to 1,078 units in September from 834 units in August. This is the highest number of new homes purchased by Singaporeans since July 2018 (1,250 units). Similarly, the number of new homes bought by PR rose 33.3 per cent month-on-month to 120 units in September this year.
September’s sales performance has exceeded market expectations given the backdrop of continued global uncertainty and ongoing trade tensions. The strong local support indicates that many Singaporeans remain confident about the long-term prospects of private properties here. Many investors have also reassessed their risk appetite given the weakening world economic outlook and increased volatility of the equities markets, possibly turning to safer investment assets like real estate properties in Singapore.
The total number of new home sales (excluding EC) have reached 7,760* units in the first three quarters of this year. Developers may move between 9,000 and 10,000 new homes by the end of this year.
*Figure has been computed by adding the Q1 and Q2 new home sales excluding EC from URA’s quarterly real estate statistics report and July-September monthly new sales numbers from the URA monthly developers’ sales survey.
Note: New launch refers to units sold in projects that were launched in the respective month. Existing launch refers to units sold in projects that had been launched in prior months.