Ghost Month spooks subside as home sales surge 81%

New market launches have reversed the yearly trend of downward sales.

Private new home sales skyrocketed 81.1% YoY to 1,122 units (excluding ECs) in August compared to the 617 homes transacted over the same period the previous year, according to real estate agency PropNex.

Compared to the previous years, this month’s performance bucked the trend of slower sales during the period due to the successful launch of Parc Clematis, which sold 316 new units in August at a median price of $1,615 psf, according to PropNex CEO Ismail Gafoor.

Also read: Parc Clematis sold 70% of units in weekend launch

Other mass market projects, such as Treasure in Tampines and the Florence Residences, also appealed to buyers and investors, added Gafoor.

Comparing the first eight months of 2019 to the same period in the previous year, the volume of sales increased by 3.2% YoY to 6,488 units in 8M 2019 compared to the 6,288 units recorded previously.

“Typically, for the month of August, sales are relatively slower due to the hungry ghost festivities, resulting in fewer new launches. However, the private new home sales for the month of August crossed the 1,000-unit mark, exceeding the corresponding year’s 617 units,” he noted.

Similarly, real estate services firm OrangeTee & Tie noted that private home demand remained “unfazed” by global economic headwinds and the ghost month. “Private home demand is considered strong as last month’s sales volume (excluding EC) was one of the highest numbers registered for the month of August in recent years, and is also above the monthly average sales of 805 units for the first seven months of this year,” commented OrangeTee & Tie.

Meanwhile, Trisha Song, head of research for Singapore in Colliers International, noted that sales of previously launched projects also picked up pace. “One reason for this could be that as new launches come on the market at benchmark prices within their given localities, prices at earlier-launched projects may start to look attractive [to] some buyers, who have decided to take the plunge after comparing prices between the various projects,” she said.

Singapore’s stable currency is also a key attraction for international buyers and investors amidst the uncertain market, both Colliers and OrangeTee & Tie noted.

“The low-volatility and strength of [Singapore’s] currency, undergirded by sound fiscal policies and a stable financial system, have boosted investors’ confidence that their property investments in Singapore will continue to hold value despite the current economic headwinds,” OrangeTee & Tie said.

Also read: Foreigners race for Singapore's luxury properties

Furthermore, OrangeTee & Tie noted that the government’s additional grants and new incentives for first-timers purchasing HDB resale flats may boost upgrader demand for private homes. Accordingly, flat owners who have planned to buy a new private condominium may now find it easier and faster to offload their HDB resale flats with a larger pool of potential flat buyers.

Accordingly, the top five best-selling new launches for the month of August were Parc Clematis, The Florence Residences, Treasure At Tampines, Parc Botannia and Parc Esta.

Colliers Research expects new home sales in 2019 to surpass the 8,795 units (excluding ECs) transacted last year; whilst PropNex forecasts the year-end sales volume to surpass the 9,000 mark.

“We believe the underlying demand for homes remains intact and will support a sustainable residential property market in Singapore,” said Song.