Strong sales reduced unsold inventory

SINGAPORE – Demand for new private homes in Singapore recovered in September after a fall in August, though it did not come close to the one-year high hit in July.

Developers sold 509 new units last month, up by 49.3 per cent from 341 in September 2015, according to data from the Urban Redevelopment Authority on Monday.

During the month, developers put 479 units – excluding executive condominiums (EC) – on the market, compared with 590 units in August. Upcoming executive condo launches include Inz Residence ECYio Chu Kang EC, Choa Chu Kang EC, Anchorvale Lane EC,  while existing ones include Terrace EC, Brownstone EC, The Vales EC, Parc Life EC , Sol Acres EC, The Visionaire, Bellewoods EC, Signature at Yishun, The Criterion EC, Treasure Crest, Northwave EC Waterwoods EC, Skypark Residences, Wandervale EC, The Amore EC,  Bellewaters EC.

Compared to a month earlier, sales were up by 8.8 per cent from August’s 468 units. The decline was partly due to the traditional Chinese Hungry Ghost festival which typically sees weaker market activity, as well as fewer units launched for sale in the month.

September sales were still dwarfed by the 1,091 units moved in July, according to data from the Urban Redevelopment Authority on Thursday.

“It gives the market stronger certainty that measures will not be tweaked in the near term and this certainty is likely to swing buyers sitting on the fence to make the purchase. Buyers have also been encouraged by the current low interest rate environment, although it could change by year-end, should the Fed revise rates upwards. The expectation that rates will likely increase should nudge more buyers to action,” Mr Desmond Sim, head of CBRE Research in Singapore and South-east Asia said.

“The strong sales so far have certainly reduced unsold inventory and encouraged developers to re-launch existing projects,” he added.

The city fringe led activity in September, with 297 units sold. This was followed by 144 units mass market homes sold and 68 units in the prime districts.

URA figures showed that 260 new EC units were sold in September, taking total new private homes transacted last month to 769, lower than August’s 799 units.

executive condo photo 1