News Update, ST 15 July 2020: Singapore new home sales rebound, hit 7-year high for month of June: URA data

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Singapore new home sales rebound to hit 7 year high for month of June, from URA data

In my opinion, it is the accumulated of sales from April to early June – Circuit Breaker period. And buyers are taking advantage of the discounts given by the developers. This reflect certain resilient demand for Singapore property market.

Summary of the rise:

New homes sales transacted in the city fringes or rest of central region jumped 127.5 per cent month on month to 430 units in June, while those in the outlying areas or outside central region rose 90.3 per cent to 489 units, and those in the prime districts or core central region (CCR) surged 92.7 per cent to 79 units over the same period.

New sales were propped up mainly by Treasure at Tampines, Parc Clematis, The Florence Residences, Parc Esta, Stirling Residences and JadeScape. Kopar at Newton remained as the top-selling project in the CCR, with 25 transactions in June.

According to URA realis data downloaded on July 15, the number of non-landed homes bought by foreigners last month rose to 49 units, higher than the 33 units in June 2019, said Ms Sun. The number of such homes bought by Singapore permanent residents also surged, to 120 units from 86 units a year ago. 

The URA realis data also showed that the number of private homes, excluding ECs, transacting at $2 million and above rose from 23 units in May to 129 units in June

In terms of proportion to the total sales (excluding ECs), 13 per cent of new homes were transacted at $2 million and above in June, compared with 5 per cent in May, Ms Sun noted

Although showflats reopened last month, more foreign buyers are purchasing private homes remotely due to the border lockdowns or travel restrictions. This is in stark contrast to the past where many foreigners typically buy a unit only after visiting a showflat

Ms Christine Sun, head of research and consultancy at OrangeTee & Tie

In my earlier post: “Possibility of Fire Sale in Singapore property”, it reflected that through nearly a decade of cooling measures, Singapore property prices have build up certain strength in the fundamentals of the property sector.

By levering on the TDSR, reducing the loan quantum of the bank lending thus increasing the cash outlay, and the ABSD and SSD. Together with the nearly S$100b budget to stabilize the Singapore economy, there is a chance that the property sector can ride out the Storm.

Moreover, in current Macroeconomic geopolitical uncertainty environment, Singapore could be the place seen for its relative stability, a natural pull to foreigners who seek a safe-haven.

These fundamentals are crucial to see whether Singapore property market will be in a V-shape or U-shape recovery, where it live with Covid19.

The other side of the coin will be the unemployment numbers and businesses activities / profit.

What do you think?

Singapore property recovering due to strong fundamentals, News Update, ST 15 July 2020: Singapore new home sales rebound, hit 7-year high for month of June: URA data, Trusted Advisor

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