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Mon, Nov 16, 2020 – 5:09 pm
Singapore DEVELOPERS sold 642 new private homes in October, 51.7% less than the 1,329 units sold in September.
The decline came amid the authorities’ crackdown on Sept. 28 on reissue of purchase options (OTP) by developers, as well as a shortage of new project launches last month.
On an annual basis, developers’ private home sales also declined 31.1 percent from the 932 units they moved in October 2019.
That means developers have sold 8,021 private homes in the first 10 months of this year, 4.5 percent less than the 8,401 units sold in the first 10 months of last year.
The figures, released by the Urban Redevelopment Authority (URA) on Monday based on its survey of licensed home developers, exclude executive condominium (EC) units, which are a hybrid of public-private housing.
Including CIs, developers moved 682 units in October, a 50.8 percent monthly drop from 1,385 units in September, and a 28.9 percent year-on-year drop from 959 units.
The tightening of OTP rules, with the aim of encouraging greater financial prudence among buyers and preventing market distortion, included restricting developers from providing initial agreements to buyers to reissue OTPs. Developers are also prohibited from reissuing OTPs to the same buyers for the same unit within 12 months after the expiration of the previous OTP; and developers must inform buyers of this condition in advance.
ERA Realty’s head of research and consulting, Nicholas Mak, noted that many potential buyers held back their purchases last month as they sought more clarity on the effects of the latest government announcement.
OrangeTee & Tie Director of Research and Consulting Christine Sun said: “Some buyers may be waiting on the sidelines, waiting for developers to moderate prices in response to falling sales volumes.
“Others who are directly affected by the new regulation may need time to resolve any outstanding issues in order to proceed with the purchase of their home. For example, HDB upgraders who may incur an additional 12 percent buyer’s stamp tax (on the purchase of a second residential property) will attempt to get rid of their existing HDB floors first.
“In the meantime, they are likely to rent a house elsewhere or make alternative accommodation arrangements with their extended families as they take time to search for a private home and wait for the project to be completed. As a result, new private home sales may pick up again in the coming months after ‘the dust has settled.’
The best-selling project last month was The Garden Residences along Serangoon North View, with 53 units sold at an average price of S $ 1,612 per square foot, followed by Treasure at Tampines, with 50 units sold at S $ 1,408 psf. half price.
At Parc Clematis in Jalan Lempeng, 49 units were sold at an average price of S $ 1,644 psf.
The only new project to launch last month, Hyll on Holland, saw five units sold at an average price of S $ 2,729 psf.
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