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Singapore’s new private home sales dip 2.6% in June amid COVID-19 restrictions

SINGAPORE: New private home sales in Singapore declined for a third consecutive month in June, with analysts attributing the drop to a lack of project launches and stricter COVID-19 measures in the first half of the month during Phase 2 (Heightened Alert).

According to data released by the Urban Redevelopment Authority (URA) on Thursday (Jul 15), a total of 872 private residential units were sold in June excluding executive condominiums (ECs).

This is a 2.6 per cent drop from the 895 units sold in May and a 12.6 per cent fall compared to the 998 units sold in June 2020.

The Outside Central Region led June sales with 337 units sold, followed by the Rest of Central Region with 329 units sold and the Core Central Region with 206 units sold, URA data showed.

READ: Singapore's new private homes sales fall in May amid tightened COVID-19 measures

READ: Singapore's new private home sales fall 2.6 per cent in April

Ms Christine Sun, senior vice-president of research and analytics at OrangeTee & Tie, said that sales were resilient considering the impact of COVID-19 restrictions.

“New home sales remained resilient last month despite a lack of project launches and measures being tightened during the heightened alert,” she said.

“Most developers avoided launching new projects as strict viewing measures remained in place at property sales galleries during the first half of the month.

“Sales were almost on par with the level seen in the month prior. Compared to a year ago, developers and property agencies were more prepared to roll out new marketing activities and launch new projects after restrictions were further eased from the second half of June.”

Ms Sun said that sales in June were boosted by several projects launched earlier, noting that many buyers of these units were Singaporeans.

“Sales were brisk at Hyll on Holland as some promotional activities were held for selected units which attracted many keen buyers … Many of the buyers were Singaporeans and with a good mixture of investors and owner-occupiers,” she said.

A total of 815 private residential units excluding ECs were launched for sale last month.

Mr Ong Teck Hui, senior director of research and consultancy at JLL, said that the numbers were unsurprising, but could point to an increase in sales later in the year.

“With the heightened alert measures stretching into mid-June, it is not surprising that new home sales in June remained modest at 872 units, and a touch lower than in May,” he said.

“However, pent-up demand could push sales higher in the months ahead.”

READ: Singapore's private home prices up 0.9 per cent in Q2, fifth consecutive quarterly rise

READ: Private home prices beat flash estimates to rise 3.3% in Q1, boosted by landed properties

Ms Sun sees positive signs for sales in August, with the easing of COVID-19 restrictions for sales galleries.

“The property market may gain significant momentum leading into August,” she said.

“Developers may get some reprieve as restrictions imposed on sales galleries aimed at curbing the virus spread may be further eased as more residents are vaccinated.

“Sales activities will likely accelerate in the coming month as many developers will be rushing to launch their projects before the start of the seventh lunar month."

Among the projects expected to be launched in the coming months are Klimt Cairnhill, Pasir Ris 8 and Bartley Vue, Ms Sun added.

Source: CNA/kg(rw)

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