Sales of new private homes down in May, but market optimistic

The sale of new private homes in Singapore fell in May compared to April due to a lack of new launches. However, analysts feel that there is an undercurrent of optimism as the total number of new households sold in the first five months of the year is quite high compared to the figures for the corresponding period last year.

Figures from Urban Development Authority revealed that house developers sold about 1,024 private homes during May, which is down 34.3 per cent from the figure of 1,558 units sold during April. Further, only 339 units were launched in May compared to the launch of about 1,616 homes in April.

house developers sold about 1,024 private homes during May, which is down 34.3 per cent from the figure of 1,558 units sold during April.
House developers sold about 1,024 private homes during May, which is down 34.3 per cent from the figure of 1,558 units sold during April. Photo courtesy: residencesbyhomestead.com

However, sentiments are upbeat in the market considering the sale of new homes in the first five months of the current year. From January to last month, developers sold 5,273 homes, up 61 per cent from the first five months of last year, data from PropNex Realty showed.

Tay Huey Ying, head of Research & Consultancy, Singapore, at property firm JLL, said, “Despite this dip, market sentiment stayed upbeat as evidenced by the robust sales volume seen for previously launched projects. Demand for units from previously launched developments has stayed elevated at above 1,000 units for three consecutive months (1,079 units in March, 1,004 units in April and 1,008 units last month).”

Speaking about the market trends, Ismail Gafoor, PropNex Realty chief executive Ismail Gafoor said, “Buyers continued to pick up units nearing their Temporary Occupation Permit dates, just as they did in April. The bestselling projects last month were Parc Riviera in West Coast Vale, where 83 units were sold at a median price of SGD1,246 per sq ft; followed by The Santorini in Tampines, where 64 units were sold at a median price of SGD1,022 per sq ft; and Commonwealth Towers, where 53 units were sold at a median price of SGD1,841 per sq ft.

Despite seasonal dips, Ismail said the trend of strong demand will continue, adding that he is optimistic that new private home transactions will exceed 10,000 units by the end of this year.

Author
Ashraf Jamal
Ashraf Jamal – Senior Writer

Ashraf Jamal brings a rare depth to writing equipped with a degree in journalism, a postgraduate degree in political science, and a degree in law from the Allahabad University. His experience includes editing and publishing the Northern India Patrika and writing for Times of India for almost a decade covering just about any topic under the sun including NRIs and Indian diaspora.

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