Private condo sales at a 4-year peak but COVID-19 situation might cool the market

SINGAPORE – New private home sales dipped in April from a month ago, But they have jumped over four occasions since April 2020, when the Covid-19 circuit breaker closed down all show flats.

Take up since 2017 – but were down 2.6 per cent from March. Year on year, sales skyrocketed 356 per cent from last year. A estimated 4,755 new personal homes were sold in the first four Months of the year, almost twice the 2,426 units sold in precisely the exact same period last year, based on JLL.

But analysts cautioned It Is uncertain if this strong momentum will Continue as a few buyers are most likely to be careful following the jump in unlinked Covid-19 community cases.

“An ancient containment of these infections would reestablish confidence and Maintain sales take-up, but a protracted spread could moderate market action,” Mr Ong Teck Hui, senior director of consultancy & research at JLL, stated.

Ms Catherine He, manager of research, Southeast Asia, CBRE, cautioned That with expected construction waits after an entry ban on long term pass holders from India and Bangladesh, more property buyers may turn into the resale market, which might affect new home sales.

Also, in a Possible dampener for both May and June earnings, there are no New home launches slated for the next half of May and all of June, after eight launches (excluding ECs) in the first 4.5 months this past season, noted Mr Mark Yip, chief executive of Huttons Asia.

The new constraints under stage two (heightened alert) from May 16 to June 13 introduced in reaction to raised unlinked community ailments could cool the current market, ” he said.

“The lowered capacity to one individual per 16 sq m and 2 per group in but virtual tours of the show flats may help a bit,” he added.

“Technology infrastructure has been stepped up because last year’s sellers and buyers are becoming more used to virtual real estate. Hence, the sector seems to be more prepared for business continuity than a year ago,” she said.

Meanwhile, developers launched 1,038 units for sale in April, more Than 8 per cent from 959 units in March. Year on year they launched 62 percent more units.

There were four launches last month – the Irwell Hill Residences, One-North Eden, Peak Residence and Grange 1866.

As much as five launches are expected in July for now – Klimt Cairnhill, Pasir Ris 8 and others.

Executive condominium (EC) units – a public-private housing hybrid vehicle. Including ECs sold, programmers moved 1,342 new houses last month – Down 2.3 per cent from March, but up 358 per cent from a year ago. There weren’t any new EC launches a month.

Regardless of the dip in April’s earnings, a larger percentage of pricier homes were marketed, Ms Sun noted.

The proportion of non-landed homes (excluding EC) that marketed over $2,000 per square foot (psf) jumped from 38.8 per cent in February to 55.4 percent in April, indicating consumer confidence, she explained.

Overall, the Majority of April’s sales excluding ECs (40.2 per cent) were in The town fringe or the remainder of central area, fostered by One-North Eden, which offered more than 85 percent of its units during its launch weekend.

This was followed by the prime or core central area. The suburbs or outside central area accounted for 24.6 per cent of total sales.

In the EC market, programmers sold 80 new units in April, up from 77 in March. Seller, moving 37 units in a median cost of $1,169 psf.

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