New private home sales in Singapore fell 27% in October from September, reported Channel News Asia, based on the data released by the Urban Redevelopment Authority (URA).
According to URA data, developers only sold 928 units in October (955 units including executive condominiums), compared to 1,270 units from the previous month.
However, on a year-to-year comparison, the figures show an 84.9% increase.
The new homes sold in October in the Core Central Region (CCR) tripled to 182 units from September, the biggest recorded since March 2016, with Singaporeans buying 133 of those units.
Analysts said the good performance was mainly due to new project launches in the area, including Midtown Bay Residences, Neu at Novena and Royalgreen. The other new launch this month was Midwood, within the Outside of Central Region (OCR)
The deficiency in major launches in the city fringe and mass-market segments like the OCR could have been a factor in the sales drop, said OrangeTee and Tie head of research and consultancy Christine Sun.
“Sales volumes tend to be lower when more luxury projects are being launched in a particular month, owing to the higher price tags and lower affordability,” she said.
URA Realis data show that this year saw 104 non-landed new homes sales reach S$5 million and above, which is the highest mark since 155 were purchased from January to October 2011, added Sun.
High-profile transactions, such as James Dyson’s purchase of Singapore’s most expensive apartment, contributed to “significant positive sentiments for developer sales,” said property analyst Ong Kah Seng.
“Despite the global trade and geopolitical uncertainties, we believe demand for Singapore private homes is still relatively stable given the tight labour market, favourable interest rate environment, and relatively healthy household balance sheet,” said Tricia Song, Colliers International head of research for Singapore.
Ong believes the country’s properties will become more attractive for foreign buyers wanting stable investments.
“There’s increasing international attractiveness of Singapore residential properties as offering longer term stability to all profiles of buyers, including from foreigners who are eschewing investments in Hong Kong due to that city’s heightening social turbulence,” he noted.
An increasing number of South Korean investors are getting interested in real estate in foreign countries, especially the United States and Japan where regulations are relatively lax and property values are stable.
Singapore now claims the top spot for real estate investment prospects in terms of price increases in 2020. Hong Kong, rocked by months of violent political protests, has fallen from 14th place to the bottom of the pile in 2019.