SINGAPORE: Private new home sales slowed down considerably by property cooling measures in the second half of December 2021. Sales declined a 58 per-cent to 650 units last month compared to it’s previous month in November with 1,547 units sold. However, last month’s new home sales may not reflect the full impact of the cooling measures just yet as a number of deals were closed before the measures were introduced on December 16. Based on caveat from URA Realis, about 60 per-cent of the transactions (excluding ECs) were concluded in the first half of the month.
Developers are taking a cautious approach to new launches in view of the newly introduced cooling measures, launching 383 new units last month. Launches were down 70 per cent from 1,283 units in November, and 71.6 per cent lower than the 1,349 units in December 2020. For the whole of last year, new private home sales totalled 13,118 units, the highest number since the 14,948 units sold in 2013.
Pullback in new home sales is expected to be temporary, as historically, sales tend to recover around six months after the implantation of new cooling measures. The most recent example would be the previous round of cooling measure in July 2018.
The best selling projects last month were Normanton Park, The Florence Residences, Dairy Farm Residences, Mori and Leedon Green. The top seller in December was Normanton Park in the suburbs, which sold 73 units at a median price of $1,831 psf. Mori, Perfect Ten and Zyanya were among projects launched last month. Mori, located at Guillemard Road, sold 71 out of 137 units at a median price of $1,869 psf. According to URA data, the Rest of Central Region (RCR) or more commonly known as city fringe, continued to record the highest number of private new home sales, moving 292 units in December. Popular launches in the RCR such as Canninghill Piers were well received by buyers.
Meanwhile, the Outside Central Region (OCR) followed with 224 new home sales. New sales nearly halved compared to the 459 units sold in November. No new homes were launched in the OCR last month. In the Core Central Region (CCR), developers sold 134 new homes. Based on flash estimates released on 3 January, (for non landed properties) the CCR grew about 3.7 per-cent in 2021, milder than the 16.9 per cent jump in the RCR and the 8.4 per cent rise in the OCR. As prices in the CCR did not increase as much compared to the other regions, buyers might still be interested in purchasing luxury homes.
Expect to see buyers more hesitant with their purchase, thus affecting prices and volumes in the first quarter. A lack of supply will continue to drive demand in 2022, with about 17,140 unsold units left on the market as at third quarter of 2021.