Singapore’s new house sales last month surged more than 114 percent from one year ago, defying the coronavirus outbreak and also a looming global recession.
Posting the second-strongest February earnings performance in eight decades, developers moved 975 private houses – up 57.3 percent in the 620 units that they offered the month earlier, driven by competitively priced fresh jobs. The most recent figure can also be 114 percent greater compared to 455 units developers sold in February this past year.
The information excludes executive condo (EC) units, for that there was pent-up requirement, together with Parc Canberra at Sembawang the sole new EC launching up to now this season.
Including ECs, that can be a public-private housing hybridvehicle, developers found buyers for 1,314 units each monthup 105.3 percent in the 640 units they offered in January and 187.5 percent greater compared to 457 units sold in February this past year.
“While we remain optimistic about home sales, much could depend on the financial fallout in the (virus) outbreak and if you will find large-scale job reductions, widespread retrenchments. (This ) will soften housing demand,” explained Ms Tricia Song, head of research to Singapore, Colliers International.
However, for the time being, persistently low interest rates are helping to encourage housing requirement.
“Mortgage rates dependent on the Singapore Interbank Offered Rate (Sibor), where many home loans are costly, have come off 30-40 basis points (bps), because the very first 50-bps rate cut from the Fed, and ought to come off farther,” Ms Song stated.
Urban Redevelopment Authority data yesterday indicates the amount of components launched jumped 56 percent to 933 in February, from 598 the prior month, and upwards 56.5 percent to 596 from one year ago.
February’s top vendors comprised fresh launches The M, that offered 380 of this 522-unit condo job in Bugis, and also the 496-unit Parc Canberra EC, that transferred 324 units.
“Cost quantum continued for a catalyst, with 97.9 percent of sales from The M under $2 million,” stated CBRE head of search to Singapore and South-east Asia Desmond Sim.
Ms Christine Sun, Orange Tee & Tie’s head of consultancy and research, attributed the strong sales to investors diversifying their portfolios following the current stock exchange rout.
“The rising volatility of the financial markets can continue to propel investors into property as possessions are considered as safe-haven assets,” she mentioned.
The amount of overseas buyers also climbed, to 149 final month from 116 in December this past year.
PropNex Realty chief executive Ismail Gafoor stated:”Having a total of 3 ECs anticipated this season, we expect the need for OLA in Anchorvale along with the EC in Tampines Avenue 10 will stay strong.”
Ms Song noted that 79 percent of those units sold in Parc Canberra are priced under $1.2 million, hitting on the sweet spot for first-timers or HDB upgraders. “OLA allegedly received 1,163 e-applications, over twice the 548 units provided. Final pricing for the units will be declared on March 19 or 20,” she explained.