ERA Daily Research - 16 August

Singapore new private home sales surge 77% to 1,545 units in July

The Business Times, 13 Aug 2021, Fri 6:52 pm

By Lisa Kriwangko

NEW private home sales in July rallied in spite of tightened community measures in the second half of the month. Riding the pent-up demand wave, developers also enjoyed ripple effects from the launch of Pasir Ris 8.

Based on caveats lodged, analysts estimated that developers in Singapore sold 1,545 new private homes in July, jumping 77.2 per cent from June's 872.

Mark Yip, chief executive officer of Huttons Asia, noted that this is the second highest monthly sale in 2021 so far, just 5.4 per cent behind that of January. He also highlighted that January had two major launches, compared to one in July.

With a median price of S$1,624 per square foot (psf), the month's sole major launch, Pasir Ris 8, made up 27 per cent of July's total new home sales. It was also the best-selling project for the month.

"The successful launch of Pasir Ris 8 has a galvanising effect on other integrated projects and projects in the vicinity," said Mr Yip.

Bottom of Form

Nicholas Mak, head of research and consultancy at ERA, added that the project's price increases later in the month turned buyers towards other developments in search of more affordable alternatives.

"After the price increase in Pasir Ris 8, the sales in Normanton Park, Midwood, Sengkang Grand Residences and Ki Residences increased significantly on a basis of units sold per day," he said.

For example, Mr Mak noted that Sengkang Grand Residences sold 31 units between July 1 to July 23. However, the integrated development sold 58 homes in the remaining eight days of the month after Pasir Ris 8 raised its prices on July 24.

"This shows that some homebuyers are price sensitive and would substitute a project at one location for another project at another location, especially if they are investors," said Mr Mak.

He also told BT that the rising prices could lead to a "fear of missing out" (FOMO) among purchasers.

Christine Sun, senior vice-president of research and analytics at OrangeTee & Tie, added: "Sales picked up across many projects last month as buyers returned to the private residential market in droves. Some rushed to buy units for fear of being priced out of the market as prices seemed to have bottomed out, and Singapore's economy is poised for further recovery in the coming months."

During the month, Normanton Park sold 124 units at a median price of S$1,824, making it a distant second among the month's top selling projects. Midwood came in third with 91 units sold at a median price of S$1,656.

Comparing year on year, the estimates are 42.7 per cent higher than the 1,083 new private homes sold in July 2020.

Including executive condominiums (ECs), which are public-private housing hybrids, the tally reached 1,700 units, up 76.7 per cent from sales in the previous month and 48.5 per cent from that of July last year.

Mr Yip said: "In the first seven months of 2021, developers have sold an estimated 8,004 units. Despite the lunar seventh month in August, developers are likely to push ahead with their launch to ride on the positive momentum. Barring unforeseen circumstances, new sales could possibly hit a high of 12,000 units in 2021."

In terms of price, homes in the S$1-1.5 million range led the month by making up 39 per cent of transactions, excluding ECs. Some 28.9 per cent of homes cost S$1.5-2 million, while 17.5 per cent of transactions were for new homes in the S$2-3 million bracket.

The outside central region continued to lead new home sales, excluding ECs, in July.

Including Pasir Ris 8, the section made up 65.2 per cent of last month's sales.

Meanwhile, the rest of central region and core central region accounted for 25.8 per cent and 9 per cent respectively, data from OrangeTee & Tie showed.


Developer of Potong Pasir’s Myra Condo bucks trend by cutting prices for certain smaller units

The Business Times, 13 Aug 2021, Fri 10:33 pm

By Lisa Kriwangko

DESPITE rising private home prices, a freehold project in Potong Pasir hasn’t got onto the bandwagon but instead, is giving discounts to buyers of certain units.

Going against the tide, the developer of Myra Condo is lopping S$80,000 and S$70,000 off the listed prices of its Type A1 one-bedroom and Type B4 two-bedroom units, respectively.

After the price cuts, Myra's 474 square feet (sq ft) one-bedroom apartments will be sold at a median price of S$1.41 million, according to a flyer seen by The Business Times.

This amounts to about S$2,974 per square foot (psf). Meanwhile, its 667 sq ft two-bedroom units have a median price of S$1.49 million, which translates to S$2,240 psf.

The condominium project stands 12 storeys tall and houses just 85 residential units ranging from one to four-bedroom apartments.

Last month, a newly launched project, Pasir Ris 8, caught the attention of buyers and agents after reportedly increasing its prices six times.

Steven Tan, chief executive officer of OrangeTee & Tie, said that despite its price increases, only "a handful" of Pasir Ris 8 units were transacted for more than S$2,000 psf last month.

"We have to bear in mind the overall average is around S$1,600 psf, which is in line with prices expected for an integrated development in the OCR (outside central region)."

He said Myra is having a "star-buy promotion", which is commonly used in many projects to attract buyers regardless of market condition. "Even in the uptrend market, some developers may still adopt this marketing strategy to accelerate sales."

Nicholas Mak, head of research and consultancy at ERA, said: "In the current property market where some developers are raising prices, a developer which lowers its prices would attract the attention of homebuyers."

Myra is located about 200 metres away from Potong Pasir MRT in District 13, which is part of the rest of the central region.

Developed by Malaysia-listed Selangor Dredging Berhad, the freehold project is expected to be completed in 2025.

Since its launch in September last year, Myra has sold 19 units as of June 2021, according to URA caveats lodged.

That said, property players say price increases are expected overall.

Mr Tan said: "The demand for properties in prime areas is growing and therefore most CCR projects are not cutting prices. Most of the projects in suburban areas are also lowering their discount as they have the confidence to meet the 5-year ABSD (Additional Buyer's Stamp Duty) requirement."

Mr Mak added that it is unlikely for other projects to lower their prices in the near future.


Virtual open house for Thomson-East Coast Line Stage 2 from Aug 23 to 27

The Straits Times, 13 Aug 2021, Fri 12:44 pm

By Toh Ting Wei

Members of the public can check out six new stations on the Thomson-East Coast Line (TEL) virtually from Aug 23 to 27, ahead of their opening on Aug 28.

The Land Transport Authority (LTA) said on Friday (Aug 13) that the online open house is linked to the Covid-19 situation.

The new stretch, named TEL2, connects Springleaf, Lentor, Mayflower, Bright Hill, Upper Thomson and Caldecott stations. Three other stations - Woodlands North, Woodlands and Woodlands South - opened in January last year

TEL2 will have two interchanges - Caldecott, with the Circle Line; and Bright Hill, with the future Cross Island Line.

Read more at:

Drop me a message

I will get back to you soonest possible!