SINGAPORE: Sales of new private homes in Singapore fell 23.6% in August after hitting a six-month high the month before.
Excluding executive condominiums, developers sold 1,215 units in August against 1,591 units in July, according to data released by the Urban Redevelopment Authority (URA) on Wednesday (September 15).
The drop in sales can be attributed to the Hungry Ghost Festival, which is traditionally a quieter time for the real estate market, analysts said.
They also noted that fewer units were launched in August, with 836 units on sale.
This is a decrease of 24.3% from the 1,104 units launched in July and 47.2% from the 1,582 units launched in August of last year.
Despite a decline in sales, the volume processed in August is considered “relatively healthy,” PropNex Realty said.
“It has demonstrated the resilience of the market despite the lack of new launches, Hungry Ghost month as well as the increased alert restrictions of Phase 2 from July 22 to August 18,” the company added.
REQUEST FOR SUBURBAN HOUSES
Suburban developments attracted the most buyers in August, with developers selling 720 units in the Outer Central Region (OCR), followed by the Rest of the Central Region (RCR) with 343 units and the Central Central Region (CCR) with 152 units.
“Projects in the suburbs and urban fringes continue to find favor with buyers because of their affordability and space,” said Ms. Christine Sun, senior vice president of research and analytics, OrangeTee & Tie.
PropNex CEO Ismail Gafoor noted that the figures show “some pent-up residual demand for suburban homes from HDB renovators, which will continue to support the market until the end of the year.”
Watergardens At Canberra, one of two projects launched in August, accounted for about 22% of new home sales in August, with 267 units sold out of 300 units launched, Gafoor said. The rest came from projects already launched.
“Due to the lack of new launches, buyers have continued to purchase new homes in past projects due to their attractive prices compared to recent launches which have higher benchmarks,” he added.
Ms. Sun noted that other top-selling projects include Normanton Park, The Florence Residences, Dairy Farm Residences and Parc Clematis.
Developers are expected to speed up project launches after Hungry Ghost Month, which could help boost sales in the weeks to come, she added.