Was March’s new home sales number an inflexion point for Singapore property?
Developer new home sales reached 1,780 units in March, the highest monthly sales figure since June 2013.
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On a monthly basis, March’s numbers were 81.8% higher than that in February and 111.2% higher than in March 2016. What is really interesting, is that it followed behind the heels of the already impressive 156.3% m-o-m and 223.1% y-o-y jump in new home sales seen in February.
According to OrangeTee Research, the growth in sales volumes was “broad-based in nature” with existing launches accounting for 61% of the sales, and the rest coming from new launches like Grandeur Park Residences, and Park Place Residences at PLQ.
In fact, excluding the sale from new launches, the sales of new homes from existing launches in March was already higher than the total number of new homes sold in February.
During the month, Grandeur Park Residences sold 484 units, while Park Place Residences at PLQ sold 217 units.
So, what caused the big jump in new homes sales?
In a note by OrangeTee’s Head of Research & Consultancy, Wong Xian Yang, the healthy sales figures resulted from “improving property market sentiments, low levels of interest rates, and a more sanguine economic outlook”.
Wong also expects primary sales volumes to continue to be healthy, driven by the strong interest in recent property launches like Artra and Seaside Residences, which is a positive sign for developers with unsold inventory. In fact, despite the unchanged property cooling measures in Singapore, Wong believes this may be an opportunity for developers to raise their prices.