More investors and overseas buyers to gobble up trophy properties: analyst
Home sales in prime districts rebounded strongly in March, and analysts say further price increases can be expected.
More investors and wealthy overseas buyers will continue to have a thirst for luxury homes in the coming months, according to OrangeTee.
In statistics released by the Urban Development Authority (URA) on developers monthly sales data, 546 luxury homes were transacted in the Core Central Region (CCR) in March, up from the 58 units transacted in the preceding month. March’s sales were also at their highest level since November 2013.
Senior vice president of research and analytics at OrangeTee Christine Sun said this means that investors seemed to be showing fresh interest in the luxury segment as sales of new homes in the prime districts rebounded strongly.
The strong home sales in CCR were mainly driven by the launch of the 558-unit Midtown Modern luxury integrated development, which sold 368 units or 65.9% of its entire project. Other high-end projects like RV Altitude (77 units), The M (29 units), Fourth Avenue Residences (13 units), Leedon Green (12 units), Kopar At Newton (7 units) and Martin Modern (7 units) continued to sell units last month. The 120-unit Atelier was also launched in March.
Due to Midtown Modern, CCR accounted for the bulk of new home purchases excluding executive condominiums (EC) last month at 42.1%, followed by the Rest of Central Region (RCR) at 29.9% and Outside of Central Region (OCR) at 27.9%.
“Singapore will continue to be one of the hot favourites among well-heeled investors and wealthy overseas buyers for trophy properties. Backed by the prospects of further price growth and a better leasing environment, foreign demand is expected to return gradually,” Sun said.
Sun said that they expect more luxury homes to be sold in the coming months as more luxury properties are slated to be launched.
PropNex’s head of research and content Wong Siew Ying agreed that demand in new private home sales will surge as near as April supported by the robust demand at Irwell Hill Residences, which sold about 280 units over its launch weekend on April 10-11.
“We believe the good take-up at recent launches such as Normanton Park, The Reef At King’s Dock, Midtown Modern, and Irwell Hill Residences should help to further bolster the confidence of consumers as well as developers for their upcoming projects. Housing demand and buying interest will likely stay fairly resilient in the coming months, supported by new launches,” Wong added.
PropNex said they project that private new home sales will cross 9,000 units for the whole of 2021.