New home sales surge to 11-month high in August
It also marked the highest number of purchases by Singaporeans since July 2018.
New home sales surged to an 11-month high in August and marked the fourth consecutive monthly increase against a backdrop of the pandemic and global economic slowdown, according to data from the Urban Redevelopment Authority (URA).
Survey results found that new home sales excluding executive condominiums (EC) rose 16.3% MoM to 1,256 units in August, from 1,080 units in July.
This marks the highest sales volume achieved since the 1,270 units sold in September, noted Christine Sun, OrangeTee & Tie head of research and consultancy.
Compared to August 2019, new home sales climbed 11.8%.
Meanwhile, domestic demand made up 84.4% of all new non-landed home sales (1,240 units) last month. This marks the highest number of Singaporean purchases in more than two years.
Private homes in the rest of central region (RCR) and outside central region (OCR) continue to form the bulk of purchases last month, Sun said. RCR made up 49.5% of the sales whilst OCR made up 40.3% of the volume. The remaining 10.2% came from core central region (CCR).
The ongoing pandemic and the volatility of equity markets may be driving the surge in new home sales, according to Sun.
“The rising economic uncertainties and volatile equity markets seemed to be fuelling the boom for properties as more buyers seek shelter for safe-haven assets. Investors have the tendency to move away from cash holdings and riskier investments towards property assets for wealth preservation,” she said.
“Moreover, record-low interest rates are stoking the property market’s recovery as mortgages are now increasingly affordable for both owner-occupiers and property investors,” she added.
Best-selling projects include Forett at Bukit Timah, Treasure at Tampines, Parc Clematis, The Garden Residences, The Woodleigh Residences, Jadescape, Whistler Grand, Daintree Residence, The Florence Residences, Affinity at Serangoon, Noma and Stirling Residences.