Possible reasons for this?
This August robust new home sales is largely supported by domestic demand while the foreigners are trickling in when our borders gradually open up.
The Pandemic-affected real economy affects the lower to the middle-income group first. The higher income group with stronger savings through the years take the opportunity of the low-interest rate environment.
This group of buyers is more confident about the recovery of the economy with one aspect of the gathering of the Tech Giants like Facebook, Google (already head-quartered here in Singapore), with the recent addition of Tik Tok (Bytedance), Tencent, and Alibaba that will make a substantial investment in Singapore.
The accumulated demand from the Circuit Breaker (Apr to June 2020) that affected the psychology of this group buyers to buy, with developers more willing to give discount.
2019 URA Master Plan reflecting future development in the longer term, where these projects stand to be gain where the development takes place.
What are your thoughts?
Feel free to share the additional possible reasons that I might have missed out.
Hungry ghosts were no match for hungry home buyers as new home sales jumped to an 11-month high last month, with developers selling 1,256 non-landed private homes, up 16.3 per cent from the 1,080 private homes sold in July. Year on year, sales were up 11.8 per cent from 1,123.
Instead of slowing during the typically quiet Hungry Ghost month, new home sales surged for a fourth straight month amid Singapore’s worst recession. Last month’s sales marked the best August performance in eight years, noted Ms Christine Sun, head of research and consultancy at OrangeTee & Tie.
In contrast, only 325 new units were sold in August 2008 amid the global financial crisis, and just 756 in August 2013 after a round of cooling measures.