New condo launch sales hits 7 months high in April
New condo launch sales hits a seven month high due to Tembusu Grand and Blossoms by The Park. Blossoms by The Park was launched few days after the new cooling measures were announced.
Despite the new ABSD rates hikes, the sales for new private condominium excluding executive condominium took a spike up from 492 units in March to 887 units sold in April. This has got to be the strongest monthly sales in 2023 since September 2022 where 987 units were transacted.
Both Tembusu Grand in Tanjong Katong and Blossoms by The Park in Buona Vista attributed to 63 per cent of the sales in April. Tembusu Grand sold 354 units out of 638 units at a median price of 2463 per square foot (psf). Blossoms by the Park sold 200 units of their 275 units at 2427 psf.
According to data released by the Urban Redevelopment Authority, year on year sales in April 2022 gained 34.2 per cent from 661units last year. In April 779 units were launched for sale, almost 36 per cent higher than the previous month and 96.2 per cent higher than a year ago. If executive condominium is included, April’s sales increased to 77.2 per cent to 909 units from 513 units in March and were up 7.3 per cent from last year. There were no executive condominium launch in April.
The city fringe was the best performer
Tembusu Grand and Blossoms By the Park both located at the city fringe performs the best in comparison to the other districts.
They accounted for 89 percent or 559 units out of 628 units sold. Orange Tee and Tie’s senior vice president of research and analytics Christine Sun said, “Despite the latest property curbs, demand for small units for investment of for own stay was evident as Blossoms By the Park sold 120 units of such unit that was below 70 sqm.”
The new cooling measures may not stop local buyers especially those buying their first property and unaffected by the new ABSD rates. Some buyers even expected that prices to increase further shud the interest rates moderates and if employment remains stable.
The new Absd increased 3 to 30 percentage point hikes. The Absd rates doubled for 30 per cent to 60 percent for foreigners, the steepest increase seen.
Two more new launches in May
Experts in the industry says that new home sales in May can be sustained by 2 other new launches in the city fringe. The Continuum, a 816 unit freehold condo in Thiam Siew Avenue and The Reserve Residences, a 732 unit condo at Jalan Anak Bukit.
The Reserve Residences which opened for preview last Saturday 13th of April had nearly 6000 visitors. The Continuum has sold 27 per cent of their units at an average price of 2732 psf.
The prime district contributed 23.4 per cent of the total sales. The best selling property in April was The Atelier in Newton, having sold 46 units at 42658 psf. Pullman Residences also in Newton sold 19 units at an average price of $3215 psf. Leedon Green sold 19 units at $2838 psf.
Ms Tricia Song from CBRE explained that The Atelier moved more units as they were having discounts right after the 27th April cooling measures announced by the government.
Ms Song added that demand is still strong for realistically priced projects in attractive locations amidst sentiments of high interest rates, cooling measures and downbeat macroeconomic conditions.
Huttons Asia’s senior director of research Lee Sze Teck said that Singapore’s real estate is beyond just tax rates. He said that on the ground chatter amongst some ultra high net worth individuals is whether the ABSD rates will go up even further and should they buy now or wait.
Lesser transactions in the suburb
Transactions in the suburbs dropped to 51 per cent in April from 78 per cent. The lack of new launches in the area and limited supply of unsold stock was the reason behind this. The Botany at Dairy Farm sold 12 units at an average of $2087 psf and The Gazania sold 10 units at $1755 psf
Lentor Hills Residences may be launched in the 2nd Quarter of 2023 may potentially ease the supply.
Propnex Realty’s head of research and content Wong Siew Ying said that private homes in the city fringe and suburbs remain resilient to current tight supply of unsold units and also demand from owner occupied purchasers.
The prime district 9,10 and 11 which has more foreign investment interest may see slight price growth in 2023.
Since Singaporeans are still the main buyers in this district this group is anticipated to be the crucial driver as there will be lesser competition from foreigners purchasing, as predicted by Chia Siew Chin JLL head of residential research.
The attractiveness of prime district properties has increased because the price gap between these and properties in city fringe has narrowed significantly.