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Fri, May 15, 2020 – 3:44 PM
Despite a drop in new home sales in April, the very wealthy had no trouble spending money for their favorite asset amidst the “circuit breaker.”
There were five homes sold last month that cost more than S $ 5 million each, the highest being a S $ 13.8 million unit at 15 Holland Hill.
Developers in Singapore sold 277 new private homes in April, a 58 percent drop from 660 in March, as buyers stayed home during the “circuit breaker,” confirming a report in Business times Thursday.
A total of 640 units were launched in April. The last time transactions fell below the number of units launched was in September.
The 277 units sold were down 62.4 percent from 737 units in April 2019, data from the Urban Redevelopment Authority (URA) showed on Friday.
The previous low was in December 2014 when 230 units were sold, said Christine Sun, head of research and consulting at OrangeTee & Tie.
The lowest sales volume since the URA began posting records in June 2007 was 108 units sold in January 2009. This coincided with the Global Financial Crisis, when sales volume remained below 200 units between October of 2008 and January 2009.
Including executive or CE condominiums, which are a public-private hybrid, 293 new homes were sold in April, up from 904 in March, or a 67.6 percent drop.
Of this number, 65.5 percent or 192 units were processed before the April 7 “circuit breaker” went live, Ms. Sun said.
With the “circuit breaker” extended through June 1, sales in May are expected to perform poorly as well, although consultants were encouraged by the fact that transactions continued amid exhibitions closing.
According to URA Realis data, several luxury projects continued to move units after “breaker” measures were implemented, including Boulevard 88, Midtown Bay, Van Holland, Kopar in Newton, and Neu in Ninth.
Two super luxury condos on Boulevard 88 were sold for over S $ 10 million each. Both seventh floor units (257 and 258 square meters) were traded on April 14 for S $ 10.3 million each, at S $ 3,711 psf and S $ 3,714 psf respectively. Two other luxury homes in Van Holland sold for S $ 3.2 million and S $ 5.1 million on April 30.
In April, more expensive houses were sold. Transactions in the Central Central Region (CCR) accounted for 36.8 percent, up from 6.8 percent in March. CCR sales reached 102 units, more than double the 45 units in March. The lawsuit was from Kopar in Newton and The M.
Kopar in Newton formed the majority of new home sales at CCR. “Kopar’s stellar sales could be attributed to its good location and attractive prices where the average price is approximately S $ 2,241 psf in April 2020,” said Ms. Sun.
“It is encouraging to see that sales remain strong for luxury homes. This may indicate that despite the pandemic, Singapore remains an attractive investment destination for wealthy investors.”
The highest priced private home made last month was a super luxury condo (477 square meters) on 15 Holland Hill for S $ 13.8 million or S $ 2,692 psf on April 2. This is the third most expensive condo unit made in the last 12 months. Mrs. Sun said. The other two highest priced units were Boulevard 88, which were sold in May and June 2019 for S $ 28 and S $ 31 million, respectively.
Compared to January 2009 when there was no “circuit breaker,” April 2020 sales are extremely good in light of the circumstances, said Lee Sze Teck, director of Huttons Asia (Research).
Shoppers are receptive to the virtual way of viewing a sales gallery, and the “circuit breaker” has resulted in a change in buying behavior, he said.
“In May, we expect sales to be similar to April. There was an increase in purchases in the first week of May, probably due to buyers deciding to commit after the ‘circuit breaker’ was extended to Dec. 1. June.
“We note that around 70 units were recorded in the first week of May. Compared to the same sales method in April, where almost 100 units were sold after the ‘circuit breaker’, this is a very strong set of numbers.” .
“This is very encouraging, as it shows that demand for properties is resilient and buyers are buying Singapore’s long-term fundamentals and ignoring short-term uncertainties,” said Lee.
Consultants are projecting sales in 2020 to cut half of the 9,912 units sold in 2019.
Read more: Private home sales in Singapore drop 58% to 277 units in April over March: URA
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