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Comments on URA home sales for August 2021

In 2021, we expect the overall momentum of the housing market to remain positive as the economy recovers. We expect to see a stronger buying power, despite potentially fewer new launches.


SINGAPORE, 15 September 2021 -- 

Shirley Wong, Senior Associate Director for Research at Colliers:

Based on the data released by the Urban Redevelopment Authority on Wednesday, 15 September, developers’ sales in August moderated by 23.6% month-on-month (MOM) to 1,215 new private homes sold (excluding Executive Condos, or ECs) from July’s 1,591 units sold, reflecting the impact of the Ghost Month in August. On a year-on-year (YOY) basis, developers’ sales declined 3.4% from the 1,258 units transacted in August 2020. This brings the total developer sales (excluding ECs) year-to-date (YTD) to 9,416 units, up 48.1% compared to the same period last year.

Developers sold 107 EC units in August, reflecting a decline of 30.1% MOM from the 155 units sold in July. There was no new EC launch during the month. Overall, the total developer sales (including ECs) in July 2021 totalled 1,322 units, reflecting a decline of 24.3% MOM and an increase of 1.0% YOY. 

 
Top 10 Selling Projects in August 2021 (including EC)

S/n

Project Name

Street Name

Tenure

Locality

Units Sold in the Month

Median Price ($psf) in the Month

% sold to date of total

1

The Watergardens At Canberra

Canberra Drive

99 yrs

OCR

267

1,469

60%

2

Normanton Park

Normanton Park

99 yrs

RCR

131

1,828

63%

3

The Florence Residences

Hougang Avenue 2

99 yrs

OCR

66

1,679

84%

4

Midwood

Hillview Rise

99 yrs

OCR

62

1,719

72%

5

Ola

Anchorvale Crescent

99 yrs

OCR

57

1,152

79%

6

Treasure At Tampines

Tampines Lane

99 yrs

OCR

50

1,372

95%

7

Dairy Farm Residences

Dairy Farm Lane

99 yrs

OCR

49

1,585

41%

8

Parc Clematis

Jalan Lempeng

99 yrs

OCR

47

1,712

88%

9

Leedon Green

Leedon Heights

Freehold

CCR

32

2,718

35%

10

The Jovell

Flora Drive

99 yrs

OCR

28

1,351

78%

Source: Colliers, URA. CCR: Core Central Region; RCR: Rest of Central Region; OCR: Outside Central Region.

The best-selling private residential project in August was the month’s only new launch – The Watergardens at Canberra – which sold 267 units or 60% of its 448 units at a median price of SGD1,469 per sq ft over the weekend of its launch. 

The other top selling projects were mostly from earlier launches, including Normanton Park, which sold another 131 units in August at a median price of SGD1,828 per sq ft. To date, the total number of units sold at Normanton Park was recorded at 1,175, or 63% of the total 1,862 units.

Analysis

The Outside Central Region (OCR), viewed as a proxy to the mass-market segment, made up 59.3% of the total sales (excluding ECs) in August, compared to 63.6% in July. The continued high proportion of OCR sales was driven by launch of The Watergardens at Canberra in August and Pasir Ris 8 in July.  

Meanwhile, the Rest of Central Region (RCR) or city fringe projects made up of 28.2% of total sales (excluding ECs), similar to May’s level at 27.5%. The Core Central Region (CCR), a proxy to high-end segment, made up of 12.5% of total sales (excluding ECs) – an increase from the 8.9% seen in July.  

There is increasing activity for projects which are priced at the median price of SGD1,000 to SGD1,499 per sq ft, which comprised 29.2% of the total sales (excluding ECs) transacted in August 2021, compared to 6.2% in July. This was once again driven by sales at The Watergardens at Canberra.

 
Outlook

After the Ghost Month in August, we believe that residential sales could pick up again in September and remain robust. 
Major projects in the supply pipeline includes the 696-unit Canninghill Piers, 230-unit Perfect Ten at Bukit Timah Road, as well as the 132-unit Amber Sea. 

In 2021, we expect the overall momentum of the housing market to remain positive as the economy recovers. We expect to see a stronger buying power, despite potentially fewer new launches.

As such, demand could overflow to ongoing launches or the secondary market. We forecast that 2021 developer sales will reach 12,000 units, above 2020’s 10,000 units. With robust demand, sales and price index could also gain strength, although potential property cooling measures, should prices outpace economic fundamentals, could temper the momentum. We expect private home prices to rise 6% in 2021, tracking the growth in GDP.

 
 

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Media Contact:

Wallace Goh